A well-known investor, referred to as a whale, borrowed $27 million from Aave V3, a decentralized lending platform, to execute a complex Bitcoin buying strategy. The whale used a recursive borrowing strategy, which involved borrowing various assets, trading them, and using the profits as collateral to borrow more Bitcoin. The transactions took place within two hours and resulted in the acquisition of 366.31 Wrapped Bitcoin (WBTC) at an average purchase value of $73,708. The whale utilized decentralized exchanges and incurred significant costs during the swaps. The final portfolio consisted of 498.6896 WBTC and 11,839.9546 staked Ethereum worth approximately $36.5 million and $30.6 million, respectively. This high-profile leveraged bet highlights the growing role of decentralized finance in enabling complex trading models previously exclusive to centralized financial institutions. However, recursive borrowing introduces risks of liquidation and adds volatility to the value of Bitcoin.
- Content Editor ( blockchainreporter.net )
- 2024-11-06
Whale Executes $27 Million Bitcoin Leverage Strategy Through Recursive Borrowing on Aave