USE CASE #8 — CEFI STAKING

Published in

MetalSwap

5 min readOct 18, 2022

Welcome back Swappers!
The first Hedging Swap in DeFi has been deployed so the games have begun!
Today we’re going to look at another great use case that the MetalSwap Tool provides.
Are you Ready? Here we go!

⚡USE CASE #8

You are a Crypto Investor and you’re using a Staking Pool to increase your $USDT on one of the many Centralized Exchanges.

Those types of Pools usually require to “freeze” your $USDT for a period of time.

This strategy, while attractive, has a limit that should not be underestimated; all or part of your liquidity is locked and if there is a buy opportunities you can not take it.

Let’s say that your $USDT staking ends in 15 days, and you think that $BTC currently have a really appealable price; you also think that $BTC is going to rise in the next 2 weeks and you want to take advantage of this opportunity.

Now you don't have all the liquidity available because is locked for 2 more weeks.

So, is there a way that can guarantee you the possibility to buy $BTC at this price?

The answer is yes, thanks to MetalSwap Heading Tool you can cover your asset from the price rise that you prevented.

Let's see how this work!

Select the commodity on the Dashboard — in this case, WBTC

Important before proceeding!

Our platform runs in an ETH environment and the most widely used ERC-20 token pegged to BTC is WBTC. We are using it to set our asset to the price of BTC.

Commodity: WBTC

Coin: USDT

Dimension target: 19371 $

Duration: 15 days

Cover: 1937.1USDT (10%)

The Liquidity Reward is automatically calculated on the data provided, in this case: 1462.45 $XMT.

In order to protect yourself from the scenario described above, you would need to open an upward position, allowing you to have the same benefits as buying BTC at today’s price.

Simply put, if the BTC countervalue goes up during the pending liquidity period, your open position on MetalSwap will go into Profit by recognizing the difference with the price set at the time of the Swap Opening!

Conversely, if the BTC countervalue goes down during this period, you will be very happy as you will have the opportunity to buy your asset at a greater discount. In that case, your Cover of 10% erodes on MetalSwap, bringing the position near to liquidation.

As you can see MetalSwap is an insurance that prevents your business from losses, freezing BTC price over a chosen timeframe!

Is very important to remember that, if you wish to keep this Swap open, our dashboard shows us that the WBTC price must never be below the Threshold of $18459.93 , otherwise your position will be Liquidated after the entire Cover is eroded.

This position on MetalSwap’s platform, will cost you a Premium of 1050.55 $USDT, plus the Cover of 1937.1 $USDT as margin to keep the position open whenever the price goes against the commodity price.

Once the exchange is automatically closed after its expiration date, the Cover will be returned. If the swap is manually closed early, the Cover will be returned minus a penalty.

LET’S NOW PROCEED TO OPEN YOUR COVER!

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

As mentioned earlier, if you wish to Close an Open Swap for any reason, you may do so, but you will be subject to a penalty. In that case, your Liquidity Reward in $XMT will be proportional to the amount of time your Swap has been Open and will not be what was indicated when you opened it.

It is good to always keep in mind that if the price is approaching your Threshold, but you do not want to close or risk liquidation, you can add $USDT as a New Cover to raise your coverage and then click “Refinance Swap” to add more margin to your active Swap.

Many more use cases are coming soon here on Medium, so be sure to 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.

$XMT CONTRACT LIST

Ethereum:
0x3e5d9d8a63cc8a88748f229999cf59487e90721e

BNBChain:
0x582c12b30f85162fa393e5dbe2573f9f601f9d91

Polygon Chain:
0xadbe0eac80f955363f4ff47b0f70189093908c04

Goerli Demo Infobox

https://demo.metalswap.finance/

USDT Demo:
0xD885375bF67fAB66e7d422a1Dad71f39527A818E
WBTC Demo:
0xf4027D47753cF54aB51315d1d0cBDF7183d7f8F0
XMT Demo:
0x5e789DB07183A902571bD7738D2D0E50297697C8

Get Goerli tokens from MetalSwap’s faucet!