I don't even disagree that there are potentially major issues here but stating this as a fact is just silly.
That's not a safe bet.
https://en.wikipedia.org/wiki/Michael_Burry, which the film "The Big Short" is based off, correctly predicted the 2007-2009 collapse of the housing market, but nearly lost everything waiting for it to occur.
> During his payments toward the credit default swaps, Burry suffered an investor revolt, where some investors in his fund worried his predictions were inaccurate and demanded to withdraw their capital. Eventually, Burry's analysis proved correct: He made a personal profit of $100 million and a profit for his remaining investors of more than $700 million. Scion Capital ultimately recorded returns of 489.34% (net of fees and expenses) between its November 1, 2000 inception and June 2008. The S&P 500, widely regarded as the benchmark for the US market, returned just under 3%, including dividends over the same period.
You can be right and still not be able to safely profit. Especially in crypto, where shady exchanges can wipe out a big short position pretty much at will with some wash trading.
If you can stomach the various risks involved (e.g. smart contract risk, exposure to ethereum 51% attack or something) then acquire any asset that AAVE has (e.g. USDC, Dai, ETH, BTC), deposit it, withdrawal USDT & sell the USDT thereby naked shorting USDT for 3% APY at current rates.
Those rates are low enough that it just doesn't seem like the market is that spooked yet.
Do you think that USDC would depeg as well?
If you do some research on Tether you realize that there is so much fishy stuff going on, it's surreal. This HAS to implode at some point.
You can short USDT on AAVE for 3% APY at current variable rates.
Meanwhile, you are paying 3-4% to whomever you are borrowing from. Addendum Meanwhile, you are probably funding an ecosystem something you are do not understand and against in the first place. :-)