I saw a video yesterday of someone depositing their ETH on AAVE, borrowing USDC and sending that to Coinbase to withdraw to their bank for a deposit on a house. So this got me thinking, what do you guys think of the following plan:
1. Use a credit card to buy X ETH
2. Stake ETH on LIDO
3. Send stETH to AAVE
4. Borrow against the stETH and get USDC
5. Send USDC to Coinbase
6. Withdraw and pay the credit balance
Now other than the obvious downsides like; gas fees, the interest that AAVE requires which should be re-payed with the interest from LIDO, hacks, what else is there that could go wrong with this?
The idea of this is it allows you to buy a decent amount ETH at a low price, even if you have to pay a small fee every month/year.
What obvious downside am I missing?