# 9. Practical Examples

Below are five common ways people might use Surf's isolated, perpetual pools. They’re illustrations only, not financial advice.

**1. Long ADA with USDM**\
• Borrow USDM from the ADA/USDM pool using ADA collateral.\
• Swap the borrowed USDM for more ADA.\
• If ADA’s price goes up, sell just enough ADA back to USDM to repay the loan and keep the extra ADA—effectively boosting your ADA stack without selling the original coins.

**2. Short ADA while holding stables**\
• Deposit USDM into the USDM/ADA pool as collateral.\
• Borrow ADA and immediately swap it for USDM.\
• If ADA’s price drops, buy it back at the lower price, repay the loan, and keep the difference—letting you profit from a decline while sitting in stablecoins.

**3. Leverage into SNEK**\
• In the ADA/SNEK pool, lock SNEK as collateral.\
• Borrow ADA and swap it for more SNEK.\
• Optionally loop the step once or twice (carefully) or wait for SNEK to rise, then repay—growing your SNEK position without new cash.\
• Bonus step: add part or all of the newly bought SNEK into the same loan as additional collateral; this lifts your Health Factor and pushes the liquidation price lower.

**4. Passive ADA yield**\
• Supply ADA to a pool where ADA is the lendable asset (for example, ADA/SURF).\
• Hold the fADA you receive; its value climbs as borrowers pay interest, 5-day Cardano staking rewards arrive, and as the pool’s share of the loan-opening fee plus  a % of the liquidation fees are credited.\
• Withdraw whenever you like—earning a higher, hands-off APY than solo ADA staking.

**5.  Yield spread Arbitrage USDM**\
• In Surf's USDM/ADA pool, use ADA as collateral to borrow USDM at a fixed 5 – 12 % APR (when utilisation is under 90%).\
• Move that USDM to Liqwid and supply it there, where it currently earns about 14 % APY. \
•  To close the loop, withdraw the USDM (plus the interest you earned) from Liqwid, use part of it to repay the Surf loan in full, and keep whatever surplus is left.


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