USE CASE #7 — NEWS & RUMOURS

Published in

MetalSwap

6 min readSep 13, 2022

Use case #7- Cover your Assets and ignore the news!

Ladies and Gentlemen!
The first Hedging Swap in DeFi has been deployed so the games have begun!
Following our newest Roadmap, from today we’re collecting info about Closed Swaps, to officially start the #SwapCompetition!

Have you heard about it? Here is the link, don’t miss this double-profit opportunity!

Maybe your first-ever Hedging Swap is following right the mindflow we’re unveiling, check out the latest MetalSwap use case!

⚡USE CASE #7

As the protagonist of our use case today, you’ll see on stage an aspect that has always distinguished the Crypto sector, the volatility!

We will do this by analysing a real case that is on right now!

Let’s say that you have a portfolio in different assets and most of that wallet is on Bitcoin and Ethereum.

Now, the World Economic situation is under a lot of pressure, while you are watching the various news to probe the ground you have learnt that soon the American Central Bank (FED) will announce another increase in interest rates!

As often happened in the past, news of this calibre has generated fear and uncertainty bring instability in the market. Precisely for this reason you are afraid that the main Coins such as BTC and ETH (where you are more exposed), will lose a lot in value even for medium-long periods!!

Again, the Cover tool provided by MetalSwap comes to your aid by protecting your wallet from volatility.

Let’s take a look with a Practical example!

Assume that you have in your portfolio 0.5 BTC at the market price of 21073 $USDT and 1 ETH at the market price of 1729 $USDT.

To protect yourself from this scenario, you will open in MetalSwap two Hedging positions downwards for WBTC and ETH in order to safeguard your value, allowing you to have the same benefits as a sale if the price drops a lot now.

Important! Our platform works in ETH environment and the most widely used ERC-20 token pegged to BTC is WBTC.

— — — — — — — — — — — — — — — — — — — — — — — — — — — —

Commodity-ETH

Token- ETH

Dimension target: 1 ETH

Duration: 15 days

Cover- 0.35 ETH (35%)

— — — — — — — — — — — — — — — — — — — — — — — — — — — —

Commodity-WBTC

Token- WBTC

Dimension target: 0.5 WBTC

Duration: 15 days

Cover- 0.15 WBTC (30%)

— — — — — — — — — — — — — — — — — — — — — — — — — — — —

By opening these two positions, if the value of your assets falls as a result of the news released by the Fed, you will go into profit on MetalSwap as if you had sold, protecting your assets from any collapse.

MetalSwap’s volatility rainbow dashboard-WBTC (30% Margin Cover)

MetalSwap’s volatility rainbow dashboard-ETH (35% Margin Cover)

If the price goes in the opposite direction, you can close the SWAP and you’ll earn on the equivalent value on the appreciation of your assets.

Premium needed to open our Hedging Swaps

To open these positions on the MetalSwap platform, you’ll pay a Premium of 0.02445 $WBTC and 0.066 for $ETH, plus,

The Cover of 0.15 $WBTC and 0.35 $ETH, as margin to keep the position open whenever the price goes against the price of the two assets. If the Swap ends positively the Cover will get entirelly back to you at the end of the chosen period!

>If the Swap is closed manually in advance, for any reasons, the Cover will be returned minus a penalty.

If you want to keep Open the Swaps, the Dashboard shows you that the price must never exceed the Threshold of 26342 $USDT (for WBTC) and 2247 $USDT (for ETH), otherwise our position will be Liquidated, after the erosion of the entire Cover value.

PERFECT!

LET’S PROCEED NOW TO OPEN YOUR COVERAGE

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

You can now click on the Swaps in the CURRENT ACTIVE SWAP section and see the situation of your current Swap.

Next look at the two new buttons you can choose to click before your Swap expires:

> Refinancing Swap

> Close Swap

Swap position management-adding Cover WBTC.

Swap position management-adding Cover ETH.

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

Your Reward in XMT tokens will be proportional to the time your Swap was opened and will not be the one indicated when you opened it.

>If the price is approaching your Threshold but you don’t want to close or risk liquidation, you can add some WBTC and ETH to raise the Cover and then click “Refinance Swap” to add more margin to the active swap.

Here’s a trick that can help you to keep from getting liquidated!

What a time to be in DeFi!

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.

⚠️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.