The Vibe: Using your crypto as collateral to borrow stablecoins or other assets — get cash/liquidity without selling your holdings.
The Details: In DeFi (platforms like Aave, Compound), you deposit crypto (ETH, BTC, etc.) as collateral and borrow against it (usually up to 50–75% of its value). You pay interest on the loan, but you keep your original coins (which can keep rising). If collateral value drops too much (e.g., ETH crashes), your position gets liquidated (sold automatically to repay the loan). It’s a way to access money during bull runs without triggering taxes or missing upside. In 2026, borrowing against BTC/ETH is popular for lifestyle spending or reinvesting.
Pro Tip: Borrow conservatively (keep loan-to-value <50%) to avoid liquidation in dips. Use stablecoin loans for safety. Monitor health factor and add collateral if needed. Great for HODLers who want cash without selling.