Aug 7, 2022

5 min read

USE CASE #3- ETH USER

Welcome friends and friends Swappers!!

Our last official airdrop has happened just yesterday, and our Testnet numbers are growing more again! We’ll see soon together some stats about it!

Are you ready for a new MetalSwap Branded Use Case to try on our app?
Time to dive!

⚡ Let’s imagine that you are a very active ETH user,

you are used to and you’ll be using different services in Ethereum’s DeFi; to do so, we come to $ETH to:

· Use some DeFi Smart Contracts

· Purchase af NFT at auction/drop

· Mint new NFTs

In this example let’s assume that you will need 1 ETH to spend in a month and since we are in a very uncertain phase of the market, you buy it today at a price of 1720.21$

Now a month is quite long and as we well know your asset can undergo different variations … rightly you are afraid that the price may change again within a month.

In fact, if the price of 1 ETH were to drop to 1300$, you would have lost 420$ in terms of turnover even before using it for your service.

The hedging tool offered by MetalSwap protects us from this scenario!

Let’s go and analyze the operation:

⚡Commodity: ETH

Token used: ETH

Target size: 1 ETH

Duration: 30 days

Coverage: 0.3 ETH (30%)

The Liquidity reward is calculated automatically on the data provided, in this case: 281.42 $XMT

Projected Liquidity Reward over the full period

To protect yourself from the scenario described above, you will open a downward position in order to protect yourself in case the value of ETH falls.

If price goes above, we’ll be eroding our Cover!

Very simple, if the value of ETH falls you will go into profit on MetalSwap.

The gain of this operation will return to you in USDT and will be the difference between the value of when you bought compared to the current value, plus you’ll get your Cover back.

If the price goes in the opposite direction, you can close the SWAP and you’ll gain from the appreciation of your asset.

As you can see whatever the scenario, you are in an advantageous situation, isn’t that great?

Very important to remember: If you wish to keep this Swap Open, our dashboard shows us that the ETH price must never be above the Threshold of $ 2150,26, otherwise our position will be liquidated after the entire Cover is eroded equal to 0.3 ETH.

Once the exchange is automatically closed, after its expiration date, the Coverage will be returned.

If the exchange is manually closed in advance, the Coverage will be returned minus a penalty.

Not only that: you will receive rewards $XMT from using the MetalSwap app and your prize goes directly to the spot market to buy more $XMT ensuring constant buying pressure directly from using the platform!

ALL CLEAR?

LET’S PROCEED NOW TO OPEN YOUR COVERAGE

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

After your confermation, the Swap is Open!

And just below you will see your Open Swap as follows:

Just click on it to see the current situation of that Swap:

Liquidity Reward is collected from this moment until the Expire Date

Now look at the two new buttons you can choose to click before our swap expires:

Ø Refinancing Swap

Ø Close Swap

As mentioned above, if you wish to close your open swap for any reason, you can do so but you will be subject to a penalty.

In this case, your reward in $XMT will be proportional to the time percentage your Swap was Opened and will not be the one indicated when you opened it.

It is good to always keep in mind that, if the price approaches your Threshold and you do not want to close or risk liquidation, you can add some ETH to raise the Coverage and then click on “Refinance Swap” to add more margin to the Active Swap.

As you can see, the realities in which MetalSwap ’s hedging-tool can be useful for us are many!
So MetalSwap ‘s app is going to be used also for Leverage your deposited Cover, if you don’t have a Target Size to hedge against!

But it doesn’t end here, many more use cases await you here on Medium, so stay tuned! ;)

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.