Is there doc on how to use future swap?

Question

DeFiChain - International

Dan Vo

Is there doc on how to use future swap?

#blockchain #cryptocurrency #defichain #english

0

31.05.2022

4 ответов

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Dan Vo Автор вопроса

Andreas
Unfortunately, I'm not aware of any docs, but some...

Just trying to understand the use case for it. I am paying 5% premium at a certain block in future. So means the profit comes when underlying asset increases by more than 5%?

0

31.05.2022

Andreas

Dan Vo
Just trying to understand the use case for it. I a...

I think solely doing a future swap won't do you any good because in the case of buying you're always paying the oracle price + 5% at settlement block. You'd need to do an Instant Swap next to the Future Swap to profit from arbitrage. So if you do a Future Buy, you'd need to do an Instant Sell at the same time. If there is a margin between both settlement prices, you make a profit.

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31.05.2022

DcShel Shelton

Dan Vo
Just trying to understand the use case for it. I a...

If for instance a dToken stock is trading at a 9% premium and you anticipate that the Oracle of that stock token is going to be flat until the future swap block, you could put some assets in a vault and mint (borrow) some of that token then sell (swap) them for dUSD while it's at 9% premium. Then you could wait until the hour before the future block to ensure a real profit based on oracle price upcoming and then contract for a repurchase of the dToken you borrowed for a swap of 5% over that price if you still are in a potential gain. Once future swap block hits , the contracted swap of dUSD to dtoken is done with the 5% fee. If the Oracle is still 9% less the price it was when you sold it, then you now have all your dTokens to retire your loan plus the 4% more in dUSD in you profited. Of course this requires the Oracle price to remain at more than 5% under what it was when you minted and traded to be profitable. Also a person that wants to swing trade or buy in cheaper when dTokens are more than 5% premiums, could buy their dToken for a guaranteed 5% over oracle and take advantage of a lower price. Also a person could use the future swap to buy back dUSD in a market decline if they hold a dToken that has fallen more than 5% under oracle to reduce losses.

0

01.06.2022

Andreas · Accepted Answer

Andreas

Unfortunately, I'm not aware of any docs, but some people did tutorials on YouTube.

0

31.05.2022

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Is there doc on how to use future swap?

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