Hi Guys,

I’ve been away from the space for a while and checked on Sovryn today, and after seeing the news about “0% fees borrowing”, I have a mathematical dilemma, which I hope someone more expert than me can answer.

I’ll be using simple numbers to illustrate the concept.

What happens if.

I use 1 bitcoin as collateral to borrow 16k USD (as I assume the USD I receive will be below market value)

I then use those 16k to buy more bitcoin, let’s say 0.9BTC

I then use those 0.9BTC to borrow 14k USD

Which I then use to buy 0.8 BTC

And I use them as collatoral, to borrow 12k

Which I then use to buy 0.7 BTC

(I will stop here for simplicity)

Now, let’s assume bitcoin doubles in value (from 20k to 40k)

My 0.7 BTC is worth 28k USD, I sell all of it and get 28k USD

I use 12k to repay the third loan, and 14k to repay the second loan.

I’m left with 2k USD and 1.7btc