Why would I borrow instead of selling my assets?


Hey! Are there any sense to borrow instead of selling my assets on Aave defi?

Answers 1

Selling your assets means closing your position on that particular asset. Hence, if you are long on the asset, you would not be entitled to the potential upside value gain. By borrowing you are able to obtain liquidity (working capital) without selling your assets. Users are mainly borrowing for unexpected expenses, leveraging their holdings or for new investment opportunities.