We are creating a price prediction market for stakers of $BTRFLY. This way, those who wish to hold their BTRFLY long term can #capitalize on short term price movements. Let’s look at a couple examples... 🧵
2/Let’s say you think that $BTRFLY is going to be $10,000 a token in a year, but you feel like there are some negative short term catalysts coming. Simply predict "short" on @entropyfi, only risking your rebase rewards. If the price goes down, you earn money and hedge your bet.
3/If the $BTRFLY price goes up? You lost some rebase rewards but your holdings still appreciated in value. This can be defined as a ‘soft hedge’ because of the lack of risk being taken in comparison to actual leveraged products.
4/In another scenario, you might believe $BTRFLY is going to go up soon. To take this side of the bet, predict "long" and where you think BTRFLY will be in a specified time frame. If your prediction is correct, you’ve successfully utilized ‘soft leverage’.
5/ "Soft" is used because contrary to how leverage works, you aren’t at risk of losing your principal.
6/ Soft leverage allows for users to take advantage of price volatility and take more risk #without the possibility of #liquidation. Soft hedging helps users reduce their risk, while still earning rebase rewards in a scenario where price goes down.
8/ Join our Discord 🏆 discord.io/entropyfi
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