Hey everyone, I’ve got a NAVI position with SUI as collateral (yep… about one-third got liquidated last Friday 😅). Earlier this week I spoke with David — he mentioned he moved his whole lend/borrow setup on Aave fully into cash. He also gave an example where he borrowed ETH on the borrow side and looped it back into supply to reduce his long ETH deltas. That got me thinking about my own position. I also want to reduce my deltas (SUI exposure) without losing leverage. The tricky part is that NAVI doesn’t have a swap feature on either the collateral or borrow side like Aave does. So if you want to derisk, you have to withdraw → swap → redeposit in smaller steps to keep your health factor stable. Then I thought: instead of looping or borrowing more, what if I just sell part of my SUI collateral for USDC and deposit that USDC as new collateral? That should also reduce my deltas, but with less risk. Below I’ve outlined the main approaches I considered 👇 ⚙️ Base setup SUI = $2.50 Collateral = 1,000 SUI ($2,500) Borrow = $1,000 USDC Starting health factor ≈ 1.5 Starting net worth = $1,500 Now let’s see what happens if SUI goes to $1.50 (bearish) or $3.50 (bullish). ---------------------- 🅰️ Option A – Collateral swap (sell SUI → deposit USDC) You sell 400 SUI ($1,000) and deposit that USDC as collateral. So now you hold 600 SUI ($1,500) + $1,000 USDC = $2,500 total collateral. Borrow stays $1,000 USDC. 📉 If SUI → $1.50 – Collateral ≈ $1,900 – Net worth ≈ $900 (so − $600 vs start) – HF ≈ 1.6 (safer) 📈 If SUI → $3.50 – Collateral ≈ $3,100 – Net worth ≈ $2,100 (+ $600 gain) – HF ≈ 1.8 (still very safe) ✅ Pros – Raises HF and lowers risk – No extra debt or interest – You can later rebuy more SUI if it drops ⚠️ Cons – You give up part of the upside if SUI pumps – Manual rebuy required ---------------------- 🅱️ Option B – Borrow hedge (borrow SUI → sell for USDC) You keep your 1,000 SUI collateral but borrow 400 SUI ($1,000) and sell it for USDC.

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