Getting Back into Cronos DeFi

I spent some time reacquainting myself with the Cronos blockchain. The 2021 bull run was great for my portfolio. The 2022 dump has been "disastrous". I had taken out loans against my crypto holdings on Tectonic when the going was good. I used to to pay down some debt. Naturally, my holdings were liquidated as their value kept dropping. This is a bad thing. But, in reality, I was getting liquidated at higher prices than what I had paid for the crypto. So, I was being liquidated at a gain. Plus, I had the cash I borrowed. So, it's not like I was left empty-handed.

DeFi on Cronos

Since then, I have been focusing on buying into HIVE and HBD. But, enough time has lapsed that I think it may be a good time to start buying other cryptos again. Looking at my DeFi account, I was still $80 in debt. So, I've paid that off. And, I topped up my holdings in DAI, WBTC, WETH, and CRO so that they are all 25%. In time, as WBTC, WETH, and CRO go up or down in value, I'll keep adding to rebalance.

Earlier, I wrote about wallet and exchange transfers using stablecoins. So, I did some of that. I bought USDC and USDT on Crypto.com and transferred to my Cronos wallet. Once there, I used the stablecoins to buy the cryptos needed to balance my holdings.

One Mistake

One mistake I had last go round, which contributed to my liquidations, was not having enough stablecoin, particularly DAI. Stablecoin would have dampened the volatility of my portfolio. In future, I might weight the positions at 40% DAI, 20% WBTC, 20% WETH, and 20% CRO. If I do get liquidated again from a market dump, it won't be as breathtaking.

Credit

My DeFi portfolio is meant to be a long-term savings, as in lifetime. It's supposed to be my bank where I can borrow money and pay back at my leisure. This is in case you're wondering why I would deposit DAI as collateral to borrow other stablecoins. It benefits me to have less volatility to give me time to pay back loans without having to scramble to avoid liquidation.

Connecting Cronos to HIVE

While I was poking around the Crypto.com DeFi wallet, I also explored how to connect it to HIVE and HBD in the fewest hops using stablecoins.

If I'm using Polygon, then it's a matter of sending my HBD to @p-hbd with my Polygon address in the comment. That can be converted to USDC in MetaMask. Then, the USDC can be transferred to the Crypto.com exchange wallet or DeFi wallet. The exchange wallet would work for conversion to fiat.

If I'm using BSC, then I would send HBD to @bnb-hbd with my BSC address in the comment. That would be converted to USDC on PancakeSwap. Then it would be transferred to an exchange for cashing out.

Arbitrage

If I'm feeling particularly clever, I could always borrow DAI from Tectonic at 1.38%, convert to HBD, deposit to HBD savings at 20%, then use the HBD interest to pay back the loan. After a few iterations of this, the HBD savings balance could become obnoxious. It would also help speed things along if I pay down the loans or increase my collateral from my own contributions.

Why Cronos?

Simply, Binance is not available to me where I live. Crypto.com, on the other hand, is readily available, particularly the DeFi part. Coinbase is also available to me. But, Coinbase lacks a DeFi option, lending in particular.

Posted Using LeoFinance Beta

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