Introducing sETH, short Ethereum
Tokenized short positions now available for trading on Radar Relay
Over the last year many of our sophisticated users, especially automated traders, have asked us for advanced trading options such as derivatives to hedge portfolio risk and take short positions on tokens.
Creating a token that allows for such functionality is a rather complex and difficult problem. Fortunately, the dYdX team has been hard at work to bring new types of financial products to the cryptocurrency market.
We’re excited to announce the next step in decentralized trading, Short Tokens. Now available on Radar Relay, starting with sETH. While ETH is the first, many more assets will have Short Tokens in the future.
Advanced Product, Simple Trading
sETH is a short position abstracted in an Ethereum token built on the dYdX protocol. On Radar Relay, you can trade short tokens directly from your wallet the same as any other ERC20 token on the platform.
This new token offering provides users the ability to diversify their portfolio while retaining custody of assets. Every aspect from creation to settlement happens via decentralized technology. Bringing more accessibility to cryptocurrencies, sETH on Radar Relay eliminates the hassle of dealing with lenders, trusting exchanges, or fumbling for orders at close.
While not for everyone, Short Tokens are a great risk management tool for traders to gain upside in a down market or hedge risk on a significant position.
For more specifics on short tokens including explanations around inverse price, token expiration, and redeeming the assets visit our educational site https://shorttokens.io/
sETH on Radar Relay
All you need to buy sETH is an Ethereum Wallet and DAI token, currently Radar Relay supports Metamask, Ledger, and Trezor.
sETH can be found on Radar Relay today through the advanced trading toggle and traded against the DAI quote. This feature allows you to take more complex financial positions. Please make sure you fully understand the dynamics of short tokens and the potential implications of using them before trading.
To get started, head to the marketplace selector and toggle on advanced trading.
From there the order process works similar to any other ERC-20 token on the platform, with a few things to keep in mind.
Each short token is labeled with the expiration date for that token. For example, Short Ethereum 10/30 will close on October 30th.
Clicking on the More button will display details about the specific token.
These tokens can be purchased and sold on Radar Relay but the minting and withdraw process are done through the Expo Trading Platform. For more details on that process, head to our educational site shorttokens.io.
We’re excited to bring this new category of short tokens to a non-custodial trading venue and take a major leap forward into the decentralized financial future.