Smart Debt

📌 What it is: You supply an xToken and borrow an LP token.

✅ How it works: This is a reversal of Smart Collateral. Now you're borrowing an LP token (which slowly loses value due to trading fees), but your supplied xToken keeps gaining. As long as borrowing the LP is cheaper than borrowing the base token, this strategy wins.

💡 Why to use it: When borrowing something like EGLD is very expensive, but borrowing the LP token is cheap.

🧪 Example:

• Supply: XEGLD

• Borrow: XEGLD/WEGLD LP