How does AAVE integrate with advanced borrowing and lending strategies?
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AAVE’s protocol supports complex financial maneuvers:Leverage Farming: Deposit collateral, borrow an asset, and redeposit it to amplify yield.
Cross-Asset Strategies: Use AAVE as collateral for stablecoins, then deploy borrowed assets in other DeFi protocols.
Flash Loans: AAVE allows uncollateralized loans for arbitrage, liquidation, or refinancing within a single transaction.
Caution: These strategies are highly sensitive to interest rate fluctuations and liquidation thresholds. Risk management tools like stop-loss automation are recommended.
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Advanced users juggling deposits and withdrawals like pros…meanwhile I just throw in a bit and hope for the best