ASSET LONGING AND SHORTING ON UNILEND FINANCE.

THE CURRENT PROBLEM

UNILEND FINANCE TO THE RESCUE

Long Positions with UniLend V2

  1. John is very bullish on ETH and wants to leverage a long position in order to maximize his profits.
  2. John then lends $1000 worth of ETH to (let’s say) ETH/USDC pool and borrows $500 USDC.
  3. USDC is then swapped to $500 worth of ETH to increase John’s portfolio exposure to ETH and now has a total of $1500 worth of ETH.
  4. If the price of ETH goes up by 1%, the total profit for John is $15 compared to the $10 profit he would’ve had without any leverage position.

Short Positions with UniLend V2

  1. Alice believes that ETH will be on a downtrend in the upcoming days and wants to leverage a short position.
  2. Alice lends a stablecoin (let’s take $1000 USDC, for example) to ETH/USDC pool and borrows $500 worth of ETH.
  3. Alice then swaps ETH back to $500 USDC and has now acquired $1500 USDC in total.
  4. Now, Alice has a debt of $500 worth of ETH. If the price of ETH drops by 1%, Alice’s debt value drops to $495, which she repays and gets a $5 profit on her short position.

Do More With DeFi!

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Bassey Saviour

Bassey Saviour

I’m a relatable life writer . Currently developing content for Web3, Defi and blockchain projects and communities.