USECASE #00 : ETH MINER

Published in

MetalSwap

4 min readFeb 10, 2022

Let’s say you’re an ETH Miner, working on Ethereum’s PoW: you sold your production in profit, and now you have a client asking for 1 ETH to be sold next month.

You both agree to buy and sell 1ETH at today’s price of 3249$, but the actual exchange happens 4weeks from now (perhaps your client is a NFT Artist, and he knows next month he’s dropping some new masterpieces!).

You, the miner, are pretty afraid that the price will change again within a month. In fact, if the price of ETH were to rise by, let’s say, $4000, you would lose more than $750 just for billing the customer in advance.

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

⚡ Usecase #00: hedging ETH with USDT

Coin- USDT

Target size- 3249,87 $

Duration- 28 days

Cover- 974,96 $ (30%)

Liquidity reward is automatically calculated on given data, in this case: 505 $XMT

To open this position, we’ll pay a Premium of 537,86$ plus the 974,96$ cover that is coming back when our swap is closed manually, with a penality, or automatically, after its expiration moment.

If we want to keep this swap open, our dashboard is pointing out that the ETH price must never be under the Threshold of 2437,40$, or our position will be liquidated, eroding the 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, it was opened just ten seconds ago!) .
If the price goes down with the time, it erodes our 974,96 USDT cover but we’re getting profits on our already sold ETH.
So we can say that MetalSwap is used to fix a price, not allowing me 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 written up here, if you wish to Close your open swap in advance for whatever reason, you can do it by paying a penality. Its amount can vary depending on how far we are from where expected before: our reward in $XMT tokens will be proportional to the time our swap has been open and will not be exactly the one indicated at the moment we opened our swap.

By the way, if the price will come close to our Threshold and we want to not close neither risk to be liquidated, we can act on the bar to add some $ to lift our cover and keep our position safer. Then we click Refinance Swap to add more margin to our active swap.

If the price of ETH will go over our 3249,87 value, this position goes in profit giving us the difference between our already sold ETH and its new price!

Not only that: we’ll get $XMT rewards for using MetalSwap’s app, and our premium (we paid MetalSwap to open our position) goes on the spot market to buy more $XMT ensuring a constant buy pressure directly from the platform usage!

Remember: to get USDT tokens on our Kovan Testnet ‘s app, fill our form: once, every 2days (more or less), some new tokens are airdropped to every address registered there!

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.