#5 - LEVERAGE $ETH

MetalSwap

Published in

MetalSwap

5 min readAug 18, 2022

Welcome Swappers friends!!

Get comfortable, here is a new MetalSwap Branded Use Case!

Today we’ll analyse together how MetalSwap can offer you a 5X leverage.

Let’s start right now! And remember our invite to try this at home straight away on MetalSwap TestNet Phase3.

⚡Let’s imagine you’re a trader, having a long vision on $ETH where you want to take advantage.

$ETH graphic technical analyse - Long strategy

According to the analysis made, you decided to have a target PRICE of 2370 $USDT to be reached in 2 weeks.

The current price of ETH is 1893 $USDT.

Which Platform can you use that allows you to work in a DEFI manner with Leverage?

Simple!

MetalSwap platform allows you to work with a 5x Leverage while respecting your PRIVACY in a DEFI manner.

Let’s see how it works!

First open the platform and choose ETH.

Ricing prize Heading.

Set the platform hedging direction on $USDT in the second section on the right and leave the Threshold slider in the centre of the dashboard (hypothetical stop loss) at 20%.

Now you can also see our operation graphically in the graph on the left.

We previously set the EXPIRE DATE at 15 days. The platform automatically closes the SWAP when the set DATE is reached, therefore you cannot speak of Take Profit, we speak instead of Expiry date.

The TARGET SIZE has been set to work with 1 $ETH (countervalue in $USDT at now, Current prize 1883.28 $USDT)

However the Cover needed is just 376.65 $USDT, this is because MetalSwap has allowed you to work with a 5x LEVERAGE.

You must remember to put an alert price on the chart, in this case at 2370 $USDT. Let’s go and analyse the operation.

Capital Required:

Premium + Cover = 242.57 + 376.65 = 619.22 $USDT

Please note: The Cover will be returned to you when the Swap expires or get closed in advance (in this latest case by payong a Closing Penalty).

The maximum loss of this operation will be 501.97 $USDT.
This will occur if the price falls below the Threshold value (Liquidation of the position) and only if the operation is not closed in advance and if the Threshold level is not changed by your hand, adding margin to your position.

Now let’s imagine that the operation reaches the target Price (namely “take profit” in our particular case) in the expected time, you can see how the gain of our Swap is composed from:

Cover that is returned to you + difference between the price when you open the Swap and the price at the end of the time period.

376.65 $USDT + $477 USDT (countervalue payed in $ETH)

You also get 264.76 $XMT from using the Metal Swap app, you can STAKE them or just hold them so you can vote in the DAO.

To open the operation on MetalSwap, you will have to pay a Premium.

This value will be used to buy back $XMT whatever the fate of this Swap.

Part of the Premium is used to buy $XMT on the market, ensuring constant buying pressure, favouring the stability of this Ecosystem.

⚡ NOW, THE TIME HAS COME TO OPEN THE SWAP!

Click the Open Swap button, confirm your transaction, and your Swap is now OPEN!

Current active Swap.

You can click on it to see the situation of your current Swap:

Manage your operation anytime before Expiry date.

- If the operation reaches the target before the 14 days scheduled and you want to close the Swap, you must pay a Closing Penalties taken from your Cover and the $XMT that will derive in Reward will be proportional to the period in which the Swap was open. Otherwise you can decide to keep it until the expire date, and collect every scheduled Reward with the risk of the further volatility of the price.

If the operation goes in the opposite direction to the covered one, your Cover margin is eroded until the price exceeds the Threshold value.
In this case the Threshold value is 1012 $USDT, and if the price goes under that value, your swap will be Liquidated.

There is also the possibility to change the Threshold level, by adding liquidity and changing the Cover percentage while the Swap is still Open. This will low our leverage risk.

- If the operation goes in the opposite direction to that expected and you close the operation, in this case you will be returned the part of the Cover NOT eroded minus the Closing Penality.

Using this Hedging Tool to take advantage of Leverage in the DEFI world is another strength of MetalSwap, we’ll keep you updated about how this Swap goes!

What a Time to be in DEFI!

⚠️Warning⚠️

❗ METALSWAP ‘s admins or moderators will NEVER contact you directly on any social under any kind of circumstances.

❗ Everything concerning $XMT ‘s smart contracts and addresses is shared by our official channels (list below), do not trust any different info from any different source.

To the MetalSwap!

… and beyond!

✎ What is MetalSwap?

MetalSwap is a decentralized platform that allows hedging swaps on financial markets with the aim of providing a coverage to those who work with commodities and an investment opportunity for those who contribute to increase the shared liquidity of the project. Allowing the protection for an increasing number of operators.

With MetalSwap we enable hedge swap transactions through the use of Smart Contracts, AMM style.