Trading On margin

Introduction to Shorter Finance: A unique DeFi you need to be aware of to survive in a bear market

Viewing DeFi as a crucial figure in helping traders in bear markets, IPI Labs integrates Shorter Finance into a 100% on-chain infrastructure encompassing venues for one-sided token farming, customizable derivatives trading, and ironclad liquidation with foresight, notably bringing margin trading and physical delivery to the DeFi landscape with a downright open source philosophy. Shorter Finance allows users to short tokens, unhindered by centralized services.

After successfully completing the pre-test rounds on February 25, 2022, we are pleased to announce the launch of the Shorter Finance beta. For users to have a better understanding of these unique features, we would like to explain what Shorter Finance is and how to interact with this sophisticated decentralized infrastructure.

Begin

This beta allows you to be part of the final testing process to fine-tune Shorter Finance, allowing you to immerse yourself in this brand new Dapp. The governance token (IPISTR) is tied to several key activities, such as maximizing ruler privileges or voting for various proposals relevant to the entire protocol. Ready to embark on your own journey to conceptualize Shorter?

Shorter Finance allows you to:

  • Earn farming yield by staking single-sided idle tokens
  • Borrow tokens from pools for leveraged margin trading
  • Avoid losses when you encounter dramatic spikes
  • Obtain passive income from governance activities and liquidations

Shorter participants fall into three broad categories. Users can engage in all three roles at the same time to explore more possibilities. Suppliers take farming profits by providing liquidity for the loan pool. Traders rely on loan pools to raise funds to meet trading needs. As a shorter stone, eligible executives use their governance rights to vote on proposals and become beneficiaries by liquidating positions approaching closing levels.

Earn unilateral token farming as a supplier

In a token lending pool, vendors can deposit one-sided tokens to earn rewards. As a vendor, you can try out the staking process.

There are three main steps in the staking process:

  1. Launch the Shorter Finance app, connect to a wallet and join the Beta program.

You can add test tokens by following these steps:

  • On this new page, request Ether from the Rinkeby Testnet.

  • Make sure to claim the ETH and USDT test tokens.

  1. Go to the “Pools” section, then select and enter one of the sETH pools.

  1. Approve and deposit a few sETH tokens that you want to farm.

  • Once you’ve confirmed the transaction in your wallet, check out “My Wallet” to see what rewards you may be eligible for.

Short any token as a trader

Traders can select a pool of token loans to open short positions or manage the position lifecycle in fine detail.

Simply launch the program as described in steps 1-2 above.

  1. To open a new, shorter position, follow these steps:
  • Type the number of test tokens and press “Short sETH”.

  • In the “Position Information” window, confirm the leverage and margin, then submit the order.

  1. You can consult your P/L by clicking on “My positions”. Selecting “Trader” will allow you to manage your position.

  • You can “Sell short” or “Buy to cover” in the pop-up window.

How does Shorter Finance protect traders?

Short-term price volatility — “spike”

Let’s take a concrete example: on May 22, 2022, the cryptocurrency market dropped suddenly and the price of CELO fell to $1.50.

  1. On a centralized exchange, John opened a 5x leveraged position and shorted 100 CELO at $1.50.

Meanwhile, on Shorter Finance, Alice has set up a position with the same parameters.

  1. CELO’s price shot up rapidly to $2.40 a few seconds later.

John has to deal with force coverage because the margin call cannot be filled.

Alice’s position has been designated as a legacy position, waiting for leaders to bid on a physical delivery method on arbitrages.

  1. In a short time, the price of CELO dropped to $1.423.

John was left without a job due to his overdrawn account.

However, Alice’s inherited position was closed in the liquidation process and the realized P/L rate was set at +25%.

Conclusion Comparison

Centralized exchange Shorter financing
Position deleted existing
Status forced liquidation remains a profit
Equity 0 125%
PL -100% +25%
Physical

Delivery

Peak

protection

Here are some key features:

  • 100% transparent on-chain position lifecycle management
  • Comprehensive and profitable pools for all types of tokens
  • Protection against dramatic spikes via physical delivery on AMM
  • Reduction of negative trading slippage
  • Direct lending model for physical delivery of cross-chain assets
  • Flexible job holding time from 1 day ~ 1000 days

What is most exciting for the community?

Shorter Finance will be a leading DeFi narrative in the coming bear market as we continue to integrate with instant messengers (e.g. Discord, Telegram), wallet apps, exchanges, and other goals. Think of it this way: you talk to someone else in the group, while your trading orders are deposited into the blockchain via letters and commands typed into the message box. Stay tuned for those!

In addition to the unique and innovative nature of Shorter Finance, our community is growing rapidly with many excellent traders and influencers. Without spending a penny, you can benefit from this first knowledge.

Shorter Finance official website: https://shorter.finance/home/
Learn more about IPISTR: https://docs.shorter.finance/governance/tokenomics
Get more information on integration: https://docs.shorter.finance/dev-resource/integrate
Follow us on twitter: https://twitter.com/ShorterFinance