The Best Time To Use Liquid Loans

3 min readOct 6, 2023

Even hardcore, long-term, dollar cost average investors know that timing is important.

The same goes for Liquid Loans.

Due to the multiple different use-cases in the protocol, there are also better and worse times to use it.

But when is the best time to use all these features?

Lets touch on three of the best times to use Liquid Loans:

Yield Farming As a Big Investor

Investors with large principal are always looking for ways to get yield.

If you are one of them, then it is a great time to use Liquid Loans.

With Liquid Loans, you can maintain your PLS bag and still take advantage of these opportunities.

You can mint USDL and then start your yield strategy.

A very simple example is the Stability Pool ( read to the end for more).

Another option, as we see new LP farms appear on DEX’s, the early returns are typically very high.

You can use LL as a way to quickly get value into these pools.

You can scrape the rewards to repay your vault or keep the gains if you see another opportunity.

Find the yield and use LL to get it.

The cry of the crypto space as a whole is Buy the Dip (BTD) or even Buy the F****** Dip (BTFD) in some instances… So how can LL be used here?

Quick Liquidity.

Rather than waiting days for typically onboarding into crypto or having to sell other assets, you can mint USDL and BTFD.

It is a simple use case, but the best tools usually are. We have all seen how fast crypto charts can move.

Being able to quickly take advantage of a pullback can have huge rewards.

If you look historically, major price action typically comes in small time frames.

Get liquidity when it counts the most.

Crypto is volatile. We all know it.

Many will maintain a lower risk profile with some of our portfolio with a variety of yield products.

We see things like money market accounts, bonds, high yield accounts for different fiat currencies for some examples.

Liquid Loans has a wonderful use case here with the Stability Pool.

You can mint or purchase USDL and stake it in the Stability Pool.

You will get a return in PLS without major exposure to the market. Remember, there is also a LOAN emission early on in the stability pool.

There are many ways and strategies to use the tools in the Liquid Loans protocol.

Even more when you look at the tools being built on top and stacking them with other defi protocols.

More will develop over time and I’m personally excited to see how much value Liquid Loans can truly add to PulseChain.

We didn’t even touch on LOAN staking, increasing exposure to PLS, and many more.

Liquid Loans will lead the way on DeFi yield and added utility to PulseChain.