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Hedge

One of the core features of SIL is to bet on long or/and short, which essentially utilize the AMM protocol and SIL’s LP composition at the same time. It requires users to have some pre-judgements of the market, the best practice is to stake long-term bullish, short-term bearish assets.

The benefit of using SIL’s hedge instead of controlling positions manually or using contract, is that:

  • SIL’s hedging can’t get you liquidated, it’s has a mild curve as the UNI v2 curve
  • Relative price(A/B assets) impact (raterate) will be reduced to rate\sqrt{rate}

At the moment, SIL’s HEDGING mode has been launched on Ethereum and Binance Smart Chain. Each chain supports different trading pairs on different swaps, but the mechanism is the same.

Read more on Hedge Guide.