Cryptocurrency whales have used revolving credit to increase WBTC leverage.
Three days ago, this whale borrowed 20 million USDC from Aave then transferred it to Kraken, from where it bought and withdrew 109.6 WBTC worth over 12.9 million USD.
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The whale borrowed 20 million USDC on the Aave platform to increase the purchasing power for WBTC.
The amount of WBTC purchased and withdrawn is 109.6, equivalent to 12.91 million USD.
The accumulated volume of WBTC currently stands at 603.5 WBTC with a value of over 71.62 million USD.
What borrowing mechanism did the whale use to increase leverage for WBTC?
Based on on-chain analysis by Ember, the whale with wallet 0xc9d…642 has leveraged revolving credit on the Aave platform to expand its WBTC investment position.
This loan allows the whale to borrow up to 20 million USDC without needing quick liquidation, enabling continuous reinvestment, helping to maximize the amount of WBTC held in the market.
The revolving borrowing method is a popular technique used by professional investors to take advantage of arbitrage opportunities and increase capital efficiency.
What is the volume of WBTC the whale has purchased and the corresponding value?
Right after borrowing USDC, the whale transferred this money to the Kraken exchange and purchased 109.6 WBTC with a converted value of 12.91 million USD.
This action of buying WBTC is accompanied by withdrawing tokens from the exchange to ensure asset safety or prepare for strategies on a personal wallet.
High purchase volume indicates positive signals for a bullish trend or effective profit-making opportunities in the WBTC market.
What is the total number of WBTC the whale is holding and the total converted value?
This whale has accumulated a total of 603.5 WBTC, with a current estimated value of around 71.62 million USD.
The cost incurred for executing transactions and related fees is approximately 90,382 USD, indicating the effectiveness of leverage used in the investment strategy.
Owning a large volume of WBTC means this whale can significantly affect the liquidity and price trend of this coin.
Utilizing revolving credit to buy WBTC helps maximize financial leverage, demonstrating in-depth investment strategies and careful calculations.
Ember, On-chain Analysis Expert, 10/8/2024
Frequently Asked Questions
How do whales use revolving leverage on Aave?
The whale continuously borrows USDC from Aave, uses it to buy WBTC, then pays back or re-borrows, creating effective financial leverage for the position.
Why do whales choose to buy WBTC on Kraken after borrowing USDC?
Kraken is a platform with high liquidity and safety, allowing whales to quickly buy large amounts of WBTC and withdraw to protective wallets.
What impact does accumulating 603.5 WBTC have on the market?
Strong purchasing power from whales can create short-term price pressure and affect WBTC liquidity in the market.
How does borrowing cost impact whale profits?
The borrowing fee of approximately 90,382 USD is low, allowing the whale to maintain high profits by wisely leveraging.
Are there any risks when using revolving credit on Aave?
The main risk is price volatility causing the market to move against, which can lead to liquidation or losses if not managed well.
Source: https://tintucbitcoin.com/ca-voi-mua-1096-wbtc-tai-aave/
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