How to Maximize Portfolio in Closed Beta. Case 6: Hedge Portfolio
Dear Equilibrians, if you haven’t followed us lately, we’ve got massive news: we’re launching our Closed Beta phase, where you can be one of Equilibrium’s first users and explore our key functionalities.
Plus, a $40,000 reward in EQ is lined up for participants!
To prepare for the launch in September, we’ll take you through a series of use cases to help you grow your virtual portfolio and be prepared for when Equilibrium is fully live.
This is the sixth use case in the series, and we’ll discuss how to hedge your portfolio and protect against market volatility.
Key things to be aware of:
- Every participant will be given a portfolio worth $25,000 worth of virtual assets
- Portfolio will contain 4 tokens: ETH, DOT, USDT, USDC
- The crypto assets supported in this Closed Beta are BTC, ETH, DOT, USDT, USDC, BNB, ACA, GLMR, ASTR, INTR, XOR, FRAX, LDO, xcDOT-stDOT f-gauge tokens
- Users need to maximize their portfolio to become the most active and compete for rewards
Register here if you haven’t already applied to join Equilibrium’s full launch.
Why Hedge Your Portfolio?
Among the strategic options available within Equilibrium is hedging. A hedge is a strategy that reduces the risks associated with an investment. As a result, the hedged profit offsets part or all the portfolio’s losses.
Equilibrium’s margin trading enables hedging strategies in the ecosystem. Our interoperable DeFi platform allows for leveraged trades on a margin of up to 20% (5x leverage), creating a hedge against any portfolio losses.
Deep Liquidity and Minimal Collaterlaztion Levels
Our unique approach to modeling collateralized loans ensures low collateralization levels to achieve high leverage. Polkadot and Substrate’s underlying network ensures you access a vibrant DEX to facilitate your low-cost and fast transactions and enjoy deep liquidity within the Equilibrium ecosystem
How Much Will this Help with Portfolio Growth?
Leveraging our margin trading feature creates room for your portfolio growth through the high leverage options and loss protection. By borrowing ETH against BTC collateral and selling it, you can hedge your portfolio and prevent significant losses. When BTC appreciates, ETH also appreciates, limiting your gain; when bitcoin declines, ETH also declines, allowing you to profit from the ETH depreciation to make up for the bitcoin loss.
As markets remain unpredictable, our high leverage model increases your earnings, which offset any losses from your trading activities.
More sophisticated hedging example involves dynamic delta-hedging where you scale in or out of stablecoins depending on your portfolio’s relative dollar value change. Buying high, and selling low you lose some money, effectively paying the premium for the protective put option set on your collateral portfolio.
How to Get Started?
Step 1: Access the Equilibrium website and select Get Started on the landing page. Alternatively, start your Equilibrium experience by connecting to a supported wallet.
Step 2: Authorize the wallet connection.
Step 3: Start trading with EQ allocation, xDOT contribution, or PLO phase 1 to hedge against any losses.
Conclusion
Hedging your portfolio through margin trading on Equilibrium provides a platform to improve user portfolios. Take advantage of the Closed Beta phase to enjoy early access and learn from the experience. Don’t let this opportunity pass by. Start growing your portfolio on Equilibrium!
Register here if you haven’t already applied to join Equilibrium’s full launch.
About Equilibrium
Equilibrium is a one-stop DeFi platform on Polkadot that allows for high leverage in trading and borrowing digital assets. It combines a full-fledged money market with an orderbook-based DEX. EQ is the native utility token that is used for communal governance of Equilibrium. xDOT is a liquid and tradeable wrapped DOT that unlocks liquidity of DOT locked in parachain auctions and delivers multiple crowdloan bonuses on Polkadot.
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