df pfp
df
@df
Shorting is a strategy of borrowing, selling, and then repurchasing the asset when the price drops Maybe dumb, but I never realized this is how shorting works behind the scenes. Is this a major reason why people borrow on lending markets like aave?
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Royal pfp
Royal
@royalaid.eth
yes, kinda. It's also to lever up on things like BTC while shorting things like the dollar because if you take out a loan against BTC in stables and purchase more BTC with this loan you doing the same thing you outlined. Another reason to use lending markets to gain access to liquidity on an asset you still want to long, i.e. hodling BTC but you still pay the bills with those gains.
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SQX
@sqx
Do you need to borrow to short? Irl markets you need borrow. (Or be a market maker designation) Longs can withhold (not lend) driving borrow rates astronomical hi.
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