Outdated - Earn While Borrowing

Outdated - Earn While Borrowing

Earn While Taking Out a Loan (AAVE)


AAVE currently has a rewards program on their Polygon app, which rewards borrowers and lenders in MATIC tokens.


MATIC rewards on AAVE will get slashed by 50% on June 14th.


From June 14th, 2021 to April 2022, the remaining MATIC will still be up for grabs.

Risk Factor: ⭐ (1 / 5)

Difficulty: ⭐ (1 / 5)

Recommended Capital: ⭐ $400+

  • Put your money to maximal work by using it as collateral.
  • We will be using stablecoin loans to borrow without liquidation risk.
  • We get rewarded MATIC for borrowing, and our collateral still earns interest.
  • Borrow fee APR gets cancelled out, and we are net positive on our loan.
  • RECOMMENDED: Use stable coins for this strategy, that way, our loans don't face liquidation since stable coins don't change in price.
  1. Step 1: Send DAI from Ethereum wallet to Polygon wallet via Zapper.fi
  2. Step 2: Deposit DAI into AAVE on Polygon. (earn DAI interest + MATIC rewards)
  3. Step 3: Take a USDT loan ~75% of deposit from AAVE. (earn rewards on your loan)
  4. Step 4: Using loaned USDT, re-deposit that into AAVE (for more interest + rewards!)

Video Walk-Through Guide:

(set-up is nearly identical to the "Getting interest on AAVE" video strategy already out, follow that and afterwards, take a USDT loan, and re-deposit it! That simple!)