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--- defi [2023/05/16 16:35] – donpdonp
+++ defi [2024/01/31 04:08] (current) – external edit 127.0.0.1
@@ Line 8: / Line 8: @@
 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
-  * boost: short U on a derivatives platform, collecting hourly fee
+    * mitigate: short U (buy puts) with strike price as current price of U
-  * problem: derivatives platform pays only when short is against market sentiment (more longs than shorts)
+    * 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)