Two derivatives strategies teach you to hedge the risk of defi position

The way of defi 2021-06-18 18:44:03 阅读数:914

derivatives strategies teach hedge risk

notes : The original author is Weiting Chen, This article is based on the presentation used in the perpetual agreement Workshop .

If this is the first time you've heard of a perpetual contract , So before we go deep into this issue , You should have a general idea of it .

Perpetual contracts are a simple way to gain leverage exposure , You can use stable currency as collateral for a perpetual contract position . After creating the position , If the price goes in the direction you expect , You can get more stable currency , conversely , Your stable currency will be less and less ( Until the warehouse burst ), It seems easy to do , It's actually a kind of speculation , No one knows whether prices will go up or down in the short term , Because you're actually gambling ( As long as you realize its essence ).

however , You can also use perpetual contracts for non speculative purposes . In this article , We will show you how to use these derivatives to ensure your earnings , And hedge the benefits of farming (yield farming) The risk of loss .

( disclaimer : Leverage has a lot of risk , It is not recommended for beginners to trade with leverage , Investors should also judge their investment ability rationally , Make a prudent decision after fully understanding the operation mode of perpetual contract .)

Avoid pledge (Staking) Lock in period

Before we delve into this strategy , The first thing we need to know is what Staking( pledge ).

In the area of encrypted assets , If a token can be pledged , This means that token holders can voluntarily lock or “ pledge ” Into the smart contract of the protocol . In return , They will benefit from the agreement , For example, revenue sharing 、 Governance or pledge incentives ( It's usually the token of the agreement ).

One of the most famous examples is AAVE, It is Aave The governance token of the agreement .

You can pledge your AAVE To support this defi agreement , If the deal gets stuck , The pledgor will take the risk and be responsible for re mortgaging the system , In return , You can get it AAVE The pledge reward of token .

But here's the thing , The state of releasing pledge exists 10 Days of cooling off , It means you need to wait 10 Genius can withdraw your pledged assets .


Since you cannot move your token during the pledge period , So your investment is locked in ( Or the so-called cooling period ) Will be affected by market fluctuations . however , As a smart trader , You want immediate benefits , Then you can get rid of this limitation through perpetual contracts .

Here's a step-by-step guide to how to do this . Suppose you are already in AAVE There is a pledge in the agreement 100 AAVE, also 1 individual AAVE The spot price of is 496 USDC, So you need to do the following :

  1. Open a short position : If you want to 496 USDC Get a profit from the price of , You can open a short position with the same amount as the pledge . In our case , You need to drive 100 AAVE Empty list .
  2. Start the cooling period : The next step , You need to send a deal on the chain , With “ notice ” Smart contract starts 10 Days of cooling off .
  3. Take the tokens and sell them : once 10 The cooling off period of three days is over , You need to send another deal , So that you can receive 100 AAVE. If AAVE During this period, the price of 396 USDC, Then sell the pledge in the market AAVE after , You will receive 39,600 USDC (100*396).
  4. Flat out the empty list : The last step is to close out , As the price of the currency falls , You will achieve 10,000 USDC(100*100) The profits of the .

If you're going to 3 And the first step 4 Add up the profits of each step , You will find that you have received a total of 49,600 USDC, It's actually equivalent to you using 496 USDC Sold for 100 AAVE( Even though you didn't receive any information in the first step AAVE).

In addition to making a profit from your short position , If you implement this strategy during a bull market , You may also receive a fee reward ( Paid by bulls ).

Per hour 0.005% How to calculate the capital interest rate of , You can get extra from this short position 535.2USDC ((496+396)/2*100*0.005%*24*10).


But if AAVE In the end, it's going to be more expensive , What will happen then ?

under these circumstances , You're going to miss some profits . Back to our previous example , Suppose after the cooling off period AAVE The price of the currency rose to 696 USDC.

Then your short position will produce 20,000 USDC (200*100) The loss of .

And what was pledged before the sale 100 AAVE And that's what you get 69,600 USDC (696*100).

therefore , In the end AAVE The price of the currency has gone up , But what you end up with is 49,600 USDC.

Lower income farming ( Liquidity mining ) Risk of loss

Although the income from farming is 100% annualized ( or “APR”) Probably up to 3 digit , But sometimes , Impermanence of loss will still make those involved in mining unprofitable .

If you don't know what impermanence is , Please check this article .

Here's an example of a bear market :

Let's assume that a new income farming opportunity APR by 150%, And the token of the project (“ Tokens, A”) The transaction price for 300 USDC, you are here Uniswap Admiral 500 Tokens A and 150,000 individual USDC Into the liquidity pool , according to APR Calculation , It's selling 45 Days of income after the farming Award , The cumulative return should be 55,479.5 USDC (150,000*2*150%/365*45), Then you want to stop providing liquidity .

however , You're surprised to find that , At this point, the token A Our price has fallen to 150 USDC, therefore , When you from Uniswap When I withdraw the token , You'll get 700 Tokens A as well as 105,000 USDC( As the price of the currency falls , The token you received A More than you put in , and USDC It will reduce .)

If you are in 150 USDC For the price of this 700 Tokens A, And combine the income with the extracted 105,000 USDC Add up , You'll find yourself suffering from impermanence , And lost 90,000 USDC((700*150+105,000)-150,000*2).

therefore , As you can see , Even though APR It's three digits , But you'll still lose money by participating in profitable farming . In this case , Your net loss is 34,520.5 USDC (55,479.5-90,000).

What to do with that !

What can you do to hedge this downside risk ? One way is to use perpetual contracts to open a short position as soon as you provide liquidity .

Let's see how adding a short position can help us solve the above problem :

  1. Provide liquidity : As mentioned above , Tokens, A The initial transaction price of 300 USDC,APR Stable at 150%, Then you will 500 Tokens A and 150,000 USDC Deposited in the working capital pool ;
  2. Open short positions : Once you deposit money , You use perpetual contracts as tokens A open 500 Tokens, A Short position of , It should be noted that , You need to provide other assets as collateral .
  3. Lock in the benefits of farming rewards : Selling token awards in the market , continued 45 God , All in all 55,479.5 USDC(150,000*2*150%/365*45).
  4. Extract liquidity : Withdraw your liquidity from the liquidity pool , get 700 Tokens A as well as 105,000 USDC( Rough estimates ), Sell this 700 individual Tokens, A, Loss 90,000 USDC(150,000*2-700*150-105,000).
  5. close a position : Because of the token A The price is from 300 USDC Fall to 150 USDC, This makes your short position in the second step profitable . After closing , You should make a profit 75,000 USDC (500*150).

Sum up , Thanks to short positions , You start from the previous 34,520.5 USDC Net loss becomes gain 40,479 USDC Revenue .

Besides , If you're implementing this strategy in a bull market , Then you are likely to get commission income , Assume that this 45 The average hourly financing rate per day is 0.003%, Then you can get extra from your short position 3,645 USDC ((300+150)/2*500*0.003%*24*45).

Of course , You may also want to know , If the token A What happens after a boom , Now let's take a look at the following scene .


Here's an example of a bull market :

If the token A The price of... Has gone up 400 USDC, The updated profit and loss is as follows :

  1. When you close short positions , Because of the token A Rise in price , You end up losing 50,000 USDC (500*100).
  2. hypothesis APR Stay in 150%, You've got 55,479.5 USDC(150,000*2*150%/365*45).
  3. When you from Uniswap When extracting liquidity , You will receive 435 Tokens, A as well as 174,000 USDC( alike , These are rough estimates ), If you sell tokens A And extracted USDC Add up , You'll find that you make 48,000 USDC(435*400+174,000-300,000).

therefore , To make a long story short , You've got 53,479.5 USDC The profits of the , That's less than participating in income farming without hedging .


Perpetual contracts are one of the most traded derivatives in the cryptocurrency market , Usually , People use it for speculative purposes , But not always , You can use the advanced strategies of these derivatives to your advantage , It's not more speculation , It's hedging your risk .

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