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defi [2023/05/16 16:35] donpdonpdefi [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
-  * problem: derivatives platform pays only when short is against market sentiment (more longs than shorts)+    * 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