🤔 The chart says I lost. But, upon paying off the loan, my real balance increased.
💡 Quick insight:
I used $USDC in Earn and took a loan in $USDT with interest lower than the Earn APR (positive carry). I also applied the $USDT in Earn, captured the spread, and then paid off the loan.
While the PnL chart showed a decline (marks the price of the assets), my net worth increased because the liability went to zero and I still retained the accumulated earnings from Earn + the avoided interest.
Well, it was time to let go, so I paid off 💰
Moral of the story:
-PnL chart ≠ Final outcome of the strategy.
-Monitor Net Worth = Assets (Spot+Earn) – Liabilities (loans).
-When the Earn APR > loan interest, there is a spread; when closing the position and paying off the debt, this gain appears in the balance — even if the daily chart is negative.
This is not a recommendation. Rates vary and there is platform/peg risk.
And you, have you ever had a negative PnL on the chart and a positive net result after paying off a loan?
