Difference between revisions of "Investing & Trading with Decentralized Loans and Assets on DeFiChain"
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The future price of an asset will be higher than it is today. | The future price of an asset will be higher than it is today. | ||
The future price of an asset will be higher than it is today. | The future price of an asset will be higher than it is today. | ||
+ | |||
'''DefiChain procedure''' | '''DefiChain procedure''' | ||
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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''' | ||
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*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 | ||
*Your complete capital is invested | *Your complete capital is invested | ||
+ | |||
+ | |||
+ | '''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 <u>you make 300 dUSD profit</u>. | ||
+ | |||
+ | |||
+ | '''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''' | ||
|} | |} | ||
<hr> | <hr> |
Revision as of 20:44, 27 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. The future price of an asset will be higher than it is today. The future price of an asset will be higher than it is today. The future price of an asset will be higher than it is today.
🡺 pay attention of the pool ratio
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.
🡺 The best case for this investment: The asset price increases |
Long position - Neutral DFI 2/2
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
🡺 The best case for this investment: The asset price increases |