Using US Treasury Bills as collateral to increase your ROI on the MakerDao.

I have combined knowledge from multiple DeFi articles and the special skills of a new DeFi company Fluidity.io to write this post about a profit strategy using credit facilities, otherwise called blockchain banks.

Fluidity.io specializes in Tokenizing Treasury bills. This is a great idea because Treasury Bills have zero volatility and guaranteed returns. If you pay 90 dollars USD for a US Treasury bill with a face value of 100 dollars USD you are guaranteed a ten percent return AND most importantly unlike 100 dollars worth of Ethereum purchased today, the Treasury bill will never be worth less then 90 dollars USD.

This means if you use the US Treasury bill as collateral for a loan, the bank or credit facility never has to worry about a market crash AND the bank or credit facility gives you loans with higher loan to value ratios as a result. This is marvelous because now you can increase your gains significantly.

Example.
You buy 100$ US worth of Ethereum.
You can borrow less then 70$ maximum, or 69$ US using Ethereum as collateral for the loan because Ethereum is volatile and your gain from holding Ethereum is not guaranteed.

However, if you buy 100$ worth of US Treasuries, your return is guaranteed and it’s not volatile, so you can borrow at a higher loan to value ratio compared to Ethereum borrow 90$ USD instead of $69. That’s 21% more in capitol loaned to you, so you could get a 21% higher return on your investment because you have 21% more capitol.

This is a turnkey investment strategy, which allows you to use Tokenization of US Treasuries to create a second stream of income.

Stay informed my friends, cryptocurrency and DeGi otherwise known as banking in the blockchain are moving quickly.

@shortsegments

Additional Information

The company which focuses on Tokenizing Treasuries has a process get the necessary approvals from the SEC upfront to deal with all known KYC or “know your customer” rules, AML “anti money laundering” rules and STO or Security Token Offering rules regarding no accredited investors. Although the MakerDao would qualify as an Accredited investor. In addition, Fluidity performs both Custodian functions (safe holding of asset) and Oracle function: monitoring market value of Tokenized asset.

**Pictures from Pixabay and Shutterstock royalty free photos. **

Using US Treasury Bills as collateral to increase your ROI on the MakerDao.

https://steemit.com/defi/@shortsegments/using-us-treasury-bills-as-collateral-to-increase-your-roi-on-the-makerdao

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