Art of Tomas
Art of Tomas 3 minutes reading from Bitcoin

We Can Pay for Rent and Living Expenses with Our #ZERO Without Selling Them

1-10 Today I’ll show you how we can pay for Rent and Living Expenses with our Bitcoin without selling them.

Using ZERO from @Sovryna href="https://cryptos.blue/bitcoin">BTC , a DEFI platform running on @RSKsmart , a sidechain that uses BTC

as its native currency as it is merged mined by the BTC miners

2-10

All we need to get started is some Bitcoin and an @RSKsmart

enabled wallet, I personally use @Liquality_io , but @MetaMask

or @defiantApp

work as well.

We exchange our BTC

for RBTC using the FastBTC bridge from @SovrynBTC

at

SovrynSovryn

3-10

The RBTC is always backed 1 to 1 with BTC and can be traded back and forth

This maintains their value, and once in the @RSKsmart

blockchain we can take advantage of SmartContracts and DEFI platforms like @SovrynBTC , @moneyonchainok and @tropykus secured by BTC

4-10

Now we Deposit our RBTC in ZERO and open a Line of Credit.

This incur a 0.05% fee and 20 deposit which we’ll get back once the LoC is closed

We can then set our collateral ratio, it is recommended 200% to 250% to be safe. And we get our ZUSD stable coin in exchange

5-10 If the price of Bitcoin

(our collateral) drops to be worth 110% less than the ZUSD (our liability) we borrowed, we would then lose our BTC , but we keep the ZUSD.

we can always add more collateral if need be, is a good idea to always keep an eye on the collateral ratio

6-10 The ZUSD can only be used for three things:

1-Repay the loan and get our BTC back 2-Add to the stability pool, help secure the protocol and profit from other users “bad loans” 3-Exchange for XUSD an aggregated StableCoin

which can be then traded for any other asset

7-10 Once we traded ZUSD for XUSD we can use this new stablecoin to get RBTC again through @SovrynBTC's">@SovrynBTCs decentralized swaps

And use the FastBTC bridge to convert back into BTC

8-10 The last move is to go from Bitcoin to fiat, I recommend using non KYC platforms such as:

1-Robosats

2-Bisq

3-Telegram Bots

Then use fiat for whatever you need it

9-10

Why jump through all this hoops? Well, all the BTC we deposited we'll get back by repaying our loan. Even if the value of it +100x, we only need to pay back our initial USD loan.

We can use the value of our coins today, and keep their long term appreciation for tomorrow!

10-10 While a bit tricky and cumbersome, ZERO is a fundamental platform for Bitcoiners to be fully self sovereign. One which will only become better and easier to use in the future.

Get on the early access… GetOnZERO!

@SovrynBTC @RSKsmart

0% interest loans on your bitcoin. No payback period Ever.0% interest loans on your bitcoin. No payback period Ever.
This post is based on this twitter thread.

Comments

Please login to comment.
Art of Tomas Art of Tomas
read at 3 minutes

0 0 0
Phoenix Phoenix
read at 26 minutes

0 0 0