USE CASE #01: NFT Artist

Published in

MetalSwap

4 min readFeb 12, 2022

Let’s say you’re an NFT Artist, dropping on Ethereum: you know that in a month’s time you’ll have to deploy new works, and to do so you are needing 1 ETH to be spent.

You buy it today, at a value of $3216.

At the same time, however, you are afraid that the price will change again within a month. In fact, if the price of 1 ETH were to fall to, let’s say, $2400, you would have lost more than $800 even before using it for your job.

That’s why an hedging tool is needed: let’s solve together this issue through MetalSwap’s main app, now Live on Kovan’s testnet!

⚡ Usecase #01: NFT Artist hedging ETH

Commodity ETH

Token used ETH

Target size- 1 ETH

Duration- 28 days

Cover- 0.3 ETH (30%)

Liquidity reward is automatically calculated on given data, in this case: 500 $XMT

To open this position, we’ll pay a Premium of 0.16ETH plus the 0.3ETH cover that is coming back when our swap is closed manually (with a penality) or automatically as previously set.

If we want to keep this swap open, our dashboard is pointing out that the ETH price must never be over the Threshold of 4020$, or our position will be liquidated, eroding the whole cover value. We’ll see how to manage this thing later.

Everything double-checked?

⚡ Time to open your cover position!

Click on the Execute Swap button, confirm your transaction and our Swap is now OPEN!

We’ll see it summarised there below, under “Current Active Swap” ‘s arrow.

Let’s click it to see our current swap’s situation: the dashboard with the original swapped price is now visible with the current values (nothing to spot about volatility now, we just opened it just ten seconds ago!) .
If the price goes up with the time, it erodes our 0.3 ETH cover but we’re getting profits on our already bought ETH.

So we can say that MetalSwap is used to fix a price, not allowing us to go under a certain threshold, that can even be managed later.

Active Swap — adding cover from 30% to 40%

Just check those two new buttons we can choose to click before our swap expires as set:

Refinance Swap
Close Swap

As told before, if we wish to Close our open swap for whatever reason, we can do it by paying a penality. Our reward in $XMT token will be proportional to the time your swap has been open and will not be the one indicated when we opened our swap.

By the way, if the price will come close to your Threshold and we want to not close neither risk to be liquidated, we can add some ETH to lift our cover and then click Refinance Swap to add more margin to our active swap.

If the price of ETH will go under our 3216 value, this position goes in profit giving us the difference between our already bought ETH and its new price!

Not only that: you’ll get $XMT rewards from using MetalSwap’s app, and your premium goes straight to the spot market to buy more $XMT ensuring a constant buy pressure directly from the platform usage!

Now I bet you’re curious: we’ll see how this swap goes in 28 days!

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.