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

From DeFiChain-Wiki
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#Buy your preferred asset on DEX with <code>x amount</code> of dUSD  Goal in the future
 
#Buy your preferred asset on DEX with <code>x amount</code> of dUSD  Goal in the future
 
#Sell asset for <code>y amount</code> of dUSD  <code>Profit: (y-x) dUSD</code>  
 
#Sell asset for <code>y amount</code> of dUSD  <code>Profit: (y-x) dUSD</code>  
 
  
 
'''Remarks'''
 
'''Remarks'''
 +
*Trades and profit are in dUSD
 +
*DEX prices are relevant for the trade, n<nowiki>Insert non-formatted text here</nowiki>ot the price feed
  
* Trades and profit are in dUSD
+
'''🡺 pay attention of the pool ratio'''
  
*DEX prices are relevant for the trade, n<nowiki>Insert non-formatted text here</nowiki>ot the price feed
 
'''🡺 pay attention of the pool ratio'''
 
 
*Any price movement of DFI will not have an effect on your investment
 
*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
 
*Step 1 and 2 will be combined to a composite swap, which is only one step for the user
Line 32: Line 31:
 
|[[File:Bild 3-1.png|left]]'''Example'''
 
|[[File:Bild 3-1.png|left]]'''Example'''
 
With a DFI price of $2.50 you sell 280 DFI, and receive 700 dUSD.
 
With a DFI price of $2.50 you sell 280 DFI, and receive 700 dUSD.
 
 
You buy 1 TSLA for those 700 dUSD and hold it.
 
You buy 1 TSLA for those 700 dUSD and hold it.
 
+
After some time the TSLA price rises to 1000 dUSD and the DFI price to $4.00.  
 
 
After some time the TSLA price rises to 1000 d
 
 
 
USD and the DFI price to $4.00.  
 
 
 
 
Selling TSLA for dUSD gives you 1000 dUSD and <u>you make 300 dUSD profit</u>.
 
Selling TSLA for dUSD gives you 1000 dUSD and <u>you make 300 dUSD profit</u>.
  
 
+
'''Remark'''
Remark: If you want to go back to DFI you will receive 250 DFI for the 1000 dUSD, because the price went up to $4.00.  
+
If you want to go back to DFI you will receive 250 DFI for the 1000 dUSD, because the price went up to $4.00.  
 
 
 
 
 
'''🡺 The best case for this investment: The asset price increases'''
 
'''🡺 The best case for this investment: The asset price increases'''
 
|}
 
|}

Revision as of 23:15, 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

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.
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
  3. 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, nInsert non-formatted text hereot 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
Long position - Neutral DFI 2/2
Bild 3-1.png
Example

With a DFI price of $2.50 you sell 280 DFI, and receive 700 dUSD. You buy 1 TSLA for those 700 dUSD and hold it. After some time the TSLA price rises to 1000 dUSD and the DFI price to $4.00. Selling TSLA for dUSD gives you 1000 dUSD and you make 300 dUSD profit.

Remark If you want to go back to DFI you will receive 250 DFI for the 1000 dUSD, because the price went up to $4.00. 🡺 The best case for this investment: The asset price increases

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