Not only can you make trades on the capital in your wallet, you can also make trades on your debt.
I DO NOT recommend this unless you know what you're getting yourself into, just explaining that it is possible.
Let's take my -$30,000 debt position as example:

I owe $30,331 in Bitcoin right now (0.255 BTC), but it doesn't have to just sit idle charging me an APY. With the ability to swap your debt on Aave, I can actually make a play if I think Bitcoin's price is going to go up.
Again DON'T, but just saying it's possible.

I can swap my WBTC into USDT, locking in my debt in dollar terms instead of Bitcoin terms.
This would increase the borrowing apy to 4.75% which is much higher, but my loan wont be affect by market volatility.
With this, I now would owe $30,363 in USDT. But why?

Bitcoin's current price is $119,000, that is what translates my 0.255 BTC debt into ~$30,000.
If Bitcoin was to go up in price, to let's say $130,000, my debt wouldn't follow if it's in USDT. I could swap my ~$30,000 debt back into bitcoin to owe only 0.23 BTC instead.

Does that make sense? Shaving down the cost of my debt, in Bitcoin terms, by trading the volatility.
Basically, when I repay, I would be repaying less bitcoin meaning I can keep the extra for myself.
Of course, this could go the opposite way and I end up owing more đ

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