defi
Differences
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defi [2023/05/16 16:35] – donpdonp | defi [2023/05/16 16:39] – donpdonp | ||
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Given one trusted coin (T) and one untrusted coin (U), deposit both in liquidity pool. Early LP rewards. | 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 | * 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 derivatives platform, collecting hourly fee | * boost: short U on a derivatives platform, collecting hourly fee | ||
- | | + | |
defi.txt · Last modified: 2024/01/31 04:08 by 127.0.0.1