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defi

= DeFi notes

2023 - May

DeFiLlama

Long-Short Strat

Given one trusted coin (T) and one untrusted coin (U), deposit both in liquidity pool. Early LP rewards.

  • risk: U price drop devalues both the pool deposit and and previous rewards
    • mitigate: short U (buy puts) with strike price as current price of U
    • problem: no options market for U
  • boost: short U on a perpetual derivatives platform, collecting hourly fee
    • problem: derivatives platform pays only when short is against market sentiment (more longs than shorts)
defi.txt · Last modified: 2024/01/31 04:08 by 127.0.0.1