Here is a simplified explanation of how it works- You are betting that eth/usd will go up within the next 3 days, so you buy (trade 1) a 3 day ether futures contract with 3,200% leverage from www.tokenchanger.io
- You turn out to be right and make a profit, trade settled. Next bet!
- You are wrong (price went down) and you make a capped loss (3%) on the trade. Don’t book the loss just yet. We believe you can hedge your way out!
Use a centralized exchange (trade 2) to SELL an underperforming coin in your portfolio for the quantity of ether matched in the futures contract.
There are 3 possible outcomes (a) The ether/hedge coin PRICE is moving sideways and you can buy back your sold coin to break-even or make profit from the overall trade (1 & 2)
(b) The ether/hedge coin PRICE is trending upward and you make a big profit on the overall trade after buying back your hedge coin.
(c) The ether/hedge coin PRICE is trending downwards and you make a bigger loss on the overall trade by missing out on the rapid appreciation of your hedge coin.
We are currently running our futures dapp on the ethereum (rinkeby) testnet and would go live as soon as possible. Test the dapp at
www.tokenchanger.ioA detailed description can be found here on our Medium Blog -
https://medium.com/tokenchangerOur Reddit -
https://www.reddit.com/r/tokenchanger/On Twitter -
https://twitter.com/TokenChangerFeel free to ask questions here or on our Telegram -
t.me/jointokenchanger
