Not only can you make trades on the capital in your wallet, you can also make trades on your debt.
I DO NOT recommend this unless you know what you're getting yourself into, just explaining that it is possible.
Let's take my -$30,000 debt position as an example:
I owe $30,331 in Bitcoin right now (0.255 BTC), but it doesn't have to just sit idle charging me an APY. With the ability to swap your debt on Aave, I can actually make a play if I think Bitcoin's price is going to go up.
Again DON'T, but just saying it's possible.
Bitcoin's current price is $119,000, that is what translates my 0.255 BTC debt into ~$30,000.
If Bitcoin was to go up in price, to let's say $130,000, my debt wouldn't follow if it's in USDT. I could swap my ~$30,000 debt back into bitcoin to owe only 0.23 BTC instead.
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