<p>The Liquid Loans protocol is an amazing tool for PulseChain maximalists. </p>



<p>By borrowing USDL and selling it to buy more PLS, users can leverage their holdings, responsibly.</p>



<p>This strategy has the benefit of <strong>increased price exposure to PLS</strong> and an <strong>expedited accumulation of PLS coin count</strong>.</p>



<p>Here’s exactly how to harness the “PLS Accumulation Strategy”:</p>



<h2 class="wp-block-heading tablecontent">Strategy Overview</h2>



<ul>
<li>Mint 2,000 USDL using 20,000 USD worth of PLS</li>



<li>Sell 2,000 USDL for PLS and deposit it into your vault</li>



<li>You now have 22,000 USD worth of PLS (thus increasing your price exposure)</li>



<li>Vault appreciates 10% to 24,200 USD worth of PLS, then mint another 420 USDL.</li>



<li>Sell that 420 USDL for PLS and deposit it back into your vault.</li>



<li>You now have 24,620 USD worth of PLS.</li>



<li>Repeat this strategy indefinitely. </li>
</ul>



<h2 class="wp-block-heading tablecontent">Step-By-Step</h2>



<figure class="wp-block-image size-large"><img loading="lazy" width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/09/18040517/PLS-Accumulation-300x169.webp 300w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/09/18040517/PLS-Accumulation-1024x576.webp 1024w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/09/18040517/PLS-Accumulation-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/09/18040517/PLS-Accumulation.webp 1200w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2024/09/18040517/PLS-Accumulation-1024x576.webp" alt="" class="wp-image-5867"/></figure>



<ol>
<li>Open Your Vault with a Collateral Ratio of 1000%</li>
</ol>



<p>NOTE: You can use whatever collateral ratio you would like. However, a 1000% collateral ratio provides enough of a buffer from both liquidation and redemption to survive most market downturns.</p>



<ol start="2">
<li>Sell the USDL for PLS and place it back into your vault. </li>
</ol>



<ol start="3">
<li>If the price of PLS appreciates 10%, then mint enough USDL to bring your collateral ratio back to 1000%. </li>
</ol>



<p>NOTE: You can mint more <a href="https://www.thecoinzone.com/pulsechain/what-influences-the-price-and-supply-of-usdl/" data-wpil-monitor-id="1080">USDL at any price</a> appreciation interval, it does not need to be every 10% rise.</p>



<ol start="4">
<li>Repeat this strategy indefintely. </li>
</ol>



<h2 class="wp-block-heading tablecontent">Comparison</h2>



<p>Let’s say you took a LOAN of 2,000 USDL on 20,000 USD worth of PLS and the price of PLS went up 30%.</p>



<p>Without taking any action, you are left with 26,000 USD worth of PLS and 2,000 USDL worth of debt.</p>



<p>Now, let’s compare this to using the PLS accumulation strategy. Everytime the price of PLS goes up 10%, you <a href="https://www.thecoinzone.com/liquidloans/usdl-is-actually-a-store-of-value-but-only-if-you-mint-it-yourself/" data-wpil-monitor-id="1287">mint more USDL</a> and convert it to collateralized PLS.</p>



<p>Your position is now 30,088 USD worth of PLS with a debt of 2735 USDL. </p>



<p>This is 4,088 more USD worth of PLS than you would have without employing this strategy (a return of over 50% compared to just a 30% return). </p>

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A PulseChain (PLS) Accumulation Strategy Using Liquid Loans

Anybody can learn to use this strategy to rapidly increase their total <a href="https://www.thecoinzone.com/pulsechain/smart-holders-will-use-liquid-loans/"  data-wpil-monitor-id="1486">PLS holdings</a>. Click here to learn exactly how to do it.