The calculation of loans and lending will enable us to exploit the system and will have an infinite profit. @OP have you tried the said calculation on a smaller amount? I am not familiar with the platform but I wonder how much is their lower limit in that system. I believe that there is a safety net to prevent exploits since your calculation can just go on and on with an initial 100M USDC anyone can get 125m-85m ren = 40M Ren profit which is around 20+M USDC infinitely.
If this kind of strategy is done for the platform, it is just a matter of time before the platform will collapse.
This strategy is just hypothetical and high risk since it requires huge sum of money to pull this kind of arbitrage loan and there’s a chance that Ren will notice your action and freeze your account due to manipulation of the market. The idea is great in theory assuming that no one will care about your action but if somethings go wrong in your loan management. You will suffer terrible loss that’s why this strategy was shared publicly and not done personally by the author since he can asked someone to fund him and DIY.