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How can I long or short assets using Aave?

Written by Nikola Milinkovic
Updated 1 month ago

While we intend to introduce the 1-transaction option of creating leveraged long or short positions for Aave as well, it’s still being worked on. Users can expect it very soon!

The process is very simple to do manually and includes only two steps:

  1. Supply your wanted collateral
  2. Boost the pair of that asset and the one you want to leverage against

Let’s assume you want to create a long ETH position. In order to do that, you would need to supply ETH and then use our advanced Boost function for the pair of ETH and a stablecoin by your choice, for example, USDC or DAI. This will borrow the stablecoin that you pick (check the Borrow APY for each), and instantly use the borrowed funds to buy more ETH to add to your position, effectively exposing you more to ETH’s movement.

Alternatively, you might be looking for a way to create a short BTC position. In that case, you would need to do the reverse - supply a stablecoin of your choice (check the supply APY for each), and then use the Boost feature for the stablecoin/BTC pair. Doing this would borrow BTC and instantly sell it for a stablecoin of your choosing which would be added to your position. 

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