A Carry Trade is a trading strategy involving borrowing an asset at a lower interest rate and re-investing it with in an asset with higher returns.

In the context of decentralized finance (DeFi), a carry trade could involve borrowing a cryptocurrency with a low interest rate on a DeFi lending platform, and then using the borrowed funds to buy a different cryptocurrency that offers a higher interest rate through a DeFi yield farming platform.

The idea behind a carry trade is to take advantage of the different interest rates offered by various cryptocurrencies in order to generate a profit.

Carry trades can be risky because they involve taking on debt, and the value of the assets involved can fluctuate, potentially leading to losses.

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