Difference between revisions of "Investing & Trading with Decentralized Loans and Assets on DeFiChain"

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===== Part 1: Long and short positions =====
 
===== Part 1: Long and short positions =====
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With decentralized loans and assets on DefiChain, you can invest in different assets betting on increasing (long) or decreasing (short) prices. We will explain 3 different ways of investing.
 
With decentralized loans and assets on DefiChain, you can invest in different assets betting on increasing (long) or decreasing (short) prices. We will explain 3 different ways of investing.
 
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====== Long position - Neutral DFI 1/2 ======
 
====== Long position - Neutral DFI 1/2 ======
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'''Investment thesis'''
 
'''Investment thesis'''
  

Revision as of 22:12, 25 September 2021

We explain DeFiChain

Episode 1: Long and short positions with stock token

Investing/Trading with Decentralized Loans and Assets

  • Part 1: Long and short positions
  • Part 2: Liquidity mining
  • Part 3: Leverage of DFI with decentralized loans
  • Part 4: Arbitrage trading of dUSD – DFI pool
  • Part 5: Arbitrage trading of dUSD – asset pool
Part 1: Long and short positions

With decentralized loans and assets on DefiChain, you can invest in different assets betting on increasing (long) or decreasing (short) prices. We will explain 3 different ways of investing.

Bild 1-2.png



Long position - Neutral DFI 1/2

Investment thesis

The future price of an asset will be higher than it is today.

DefiChain procedure

  1. Sell DFI on DEX for dUSD
  2. Buy your preferred asset on DEX with x amount of dUSD

Goal in the future

  1. Sell asset for y amount of dUSD

Profit: (y-x) dUSD

Remarks

  • Trades and profit are in dUSD
  • DEX prices are relevant for the trade, not the price feed 🡪 pay attention of the pool ratio
  • Any price movement of DFI will not have an effect on your investment
  • Step 1 and 2 will be combined to a composite swap, which is only one step for the user
  • Your complete capital is invested
Part 2: Liquidity mining
Part 3: Leverage of DFI with decentralized loans
Part 4: Arbitrage trading of dUSD – DFI pool
Part 5: Arbitrage trading of dUSD – asset pool
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