Don't Dump on Yourself (Cash Out with Liquid Loans)

Don’t dump on yourself!

Well, not like that.

Don’t sell PLS on your own head!

I am here to tell you that there is a MUCH better way to sell your PLS if you have to.

Benefits of Using Liquid Loans to Sell

There are 3 main reasons why you would want to take a loan rather than market selling:

Does Not Harm the PLS Price

If you hold PLS, you probably like PulseChain and the Richard Heart Ecosystem.

Which means you want to see it succeed well into the future.

One way you could contribute is by taking a loan rather than selling.

If you lock up your PLS and mint USDL, you are NOT creating sell pressure for PLS.

This helps keep the price from dropping and maintains momentum for the PLS ecosystem. 

Maintains Price Exposure to PLS

Let’s say right after you sell, the PLS price wicks 10% on some long-awaiting good news for PulseChain.

If you had sold on the market, you would have to buy back higher.

If you had taken a loan, you still have your PLS bag and benefit from the price appreciation.

From here, you can either keep your vault where it is, or you can mint more USDL.

Avoids Taxable Event (NFA)

This, of course, is not financial advice.

But in most jurisdictions, taking on debt is not taxable. 

Meaning, you likely won’t have to pay taxes on your minted USDL unless your vault is liquidated. 

This strategy is one of the tricks of the rich.

Elon Musk has famously taken a loan using his Tesla shares as collateral.

This not only keeps his Tesla shares in his possession, but it also helps him avoid a taxable event while getting access to much needed liquidity.  

The Bottom Line

Before you hit the sell bottom, do your research so you understand that better options are available to you.

By taking a loan rather than selling, you don't harm the price, you maintain price exposure to PLS, and you avoid a taxable event in most jurisdictions.

If you have to sell, follow this guide to learn how to borrow USDL.