A Step-by-Step Guide to Trade Hash Rate Futures
About SynFutures
SynFutures is an upcoming derivatives protocol, currently in V1 Closed Alpha phase. The team is a combination of crypto natives and Wall Street top guns, with the idea to build a solid infrastructure for future DeFi derivatives on Ethereum and other L2/side chains. In June 2021, SynFutures announced $14mn Series A funding led by Polychain Capital with participation from Framework, Pantera Capital, Bybit, Wintermute, CMS, Kronos, and IOSG Ventures. Earlier 2021, it announced a seed round backed by Dragonfly Capital and Standard Crypto.
Visit the official website to register for 💻V1 Closed Alpha early access or follow us here on Medium / Twitter / Telegram / Discord.
Welcome back TradeStars! In our previous article, we learnt how to become an Arbitrageur on SynFutures (I hope you made money just like I did). Today’s guide is to master trading Hash Rate.
This is a practical manual for doing actual trades. In case you want to know more about Hash Rate Futures itself, you can check out our Product overview here, or Help Center. In case you have not registered for the Closed Alpha, you can register here for early access to the dapp.
Let the Trading Begin!
Similar to any other asset futures on SynFutures, Hash Rate trading involves 3 simple steps:
1. Choose the Hash Rate contract;
2. Select long/short direction and trading amount;
3. Deposit margin and trade!
1. Choose the Hash Rate contract
Hash Rate futures currently run on the Polygon network (more in pipeline). Therefore, you will need to switch to Polygon first by clicking the switch button on top right, then choose Polygon, and confirm the switch in your Metamask pop-up.
Then please pick BTCHASH from the Base drop-down list. BTCHASH is the code for Bitcoin Hash Rate Futures.
Remember the contract Margin token (aka Quote token) is wrapped Bitcoin (WBTC). You may need to bridge your WBTC from other networks to Polygon via bridges. Here we have the link for Polygon’s official Ethereum->Polygon bridge, in case needed.
Of course, you can further select a Maturity date if needed. For ease of mind, the front (earliest and usually the most liquid) contract is selected by default.
2. Select long/short direction and trading amount
Let’s say I am bullish on BTCHASH (i.e. bearish on Mining Difficulty), I shall choose Long/Buy side, and key in my amount of 0.1 BTCHASH. It shows the estimated trade price of 0.12628, as well as reference (mining) Difficulty of 13.9378T.
For detailed specifications of BTCHASH, please see this article. To understand further what does Long and Short mean in BTCHASH context, please read this article, or refer to this cheat sheet here for PnL.
3. Deposit margin and trade (including closing an existing position)
To deposit margin, you can simply input the amount desired, or click on desired leverage level for an auto-fill of calculated required margin. In my case, I choose 2x leverage. The required margin amount is automatically filled. Then I click the Deposit button.
To complete the trade, now click the Trade button, and then approve in Metamask.
If you want to close a position, simply put in the same amount in trade, and choose the opposite direction of your original trade.
(I didn’t tell you the secret short-cut entrance to Hash Rate trading. Try to find it.)
