ā†˜ļøCope-Free Hedge

A cope-free way to hedge

Reduce Risk Without Unwinding

Who is it for?

If Iā€™m in for the long-term for the rebase project, I foresee a short-term negative price action. I can hedge against rebase token price going down.

How does it work?

  • I will predict price of the token is lower on the Entropyfi (50,50)

  • If the price does go down, I can receive additional rebase rewards from people who predicted otherwise

  • The additional rebase rewards can help offset the impact of price depreciation

  • Think of soft hedge as insurance, and the payment is only the rebase reward for the duration of the protection

Soft Hedge versus Partially Sell

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