Firstly, unlike HEX, PLS is set to have a thick liquidity pool to handle sell pressure - it won’t be as volatile as HEX with no sudden and major drops.
Secondly, familiarize yourself with the massive buy pressure potential Liquid Loans will introduce for PulseChain. Watch Haunted's interviews and review the calculator spreadsheets on his site to see how significant buy pressure could be driven by LL users. In short, the dips will be short-lived, PLS could be just as gatekept as HEX, but just a fraction of LL participants could drive the price to unimaginable levels.
PulseChain price could crash 99.9% and this strategy will still work and make money. The beauty of utilizing the optimized “USDL Strategy” (https://t.me/uPabns/2458) is it is protected from market downturns. Besides 40% of the sacrificed capital to be deployed between three LL vaults, 50% of sacrificed funds will be deployed to the LL Stability Pool to ensure sufficient stablecoin reserves to weather the unlikely, but possible, market downturns in PLS (new vaults to return to conservative collateral levels).
Even a 99.9% dip?! How is that possible?!
For example, let's say you were doing the USDL Strategy, and besides the vaults, there would be 500k USDL deployed in the stability pool, whilst the PLS price is $1 for easy maffs. If PLS dips 75% ($0.25) you would use 40% of what is in the stability pool (200k) to create two new vaults to return collateral levels 500%.
Now let's say PLS keeps dipping and your first two vaults become liquidated - let’s say it did another 75% dip from $0.25. Now two new vaults are created using 40% of what is left on the stability pool (120k USDL). The price of PLS is at this point $0.0625, which is a total of 93.75% drop from the all-time high of $1.
Now let’s do it all again, 75% dip ($0.0156) and price is now down 98.44% from the all-time high. Again, use 40% of what is in the stability pool to open two new vaults using 72k (leaving 108k in the stability pool) to return the collateralization ratio back to 500%.
This can continue with PLS dropping to 99.9% from the all-time high and you would still have two vaults active to remain solvent.
Once PLS stops dipping and returns back to the all-time high, then the vault would accumulatively hold a 650k, plus 758k in the USDL in the Stability Pool. So in this example, you would have initially had 500k in the Stability Pool but now have 758k in the Stability Pool. This is not calculating any yield you would have made in that time in the Stability Pool or the accrued $LOAN token staking pool.