Envisioning DeFi as a crucial character in assisting traders through bear markets, IPI Labs builds Shorter Finance into a 100% on-chain infrastructure encompassing venues for single-sided token farming, customizable derivatives trading, and foolproof liquidation with foresight, notably bringing margin trading and physical delivery to the DeFi landscape with a downright open-source ethos. Shorter Finance allows users to short tokens, without being interfered with by centralized services.
Having successfully completed preliminary testing rounds on February 25th, 2022, we are pleased to announce the launch of the Shorter Finance Beta Version. For users to have a better understanding of these unique features, we’d like to explain what Shorter Finance is and how to interact with this sophisticated decentralized infrastructure.
Getting Started
This Beta Version allows you to be part of the final testing process to refine Shorter Finance, allowing you to immerse yourself in this brand-new Dapp. The governance token (IPISTR) is linked to several key activities, such as maximizing the privileges of Rulers or voting for diverse proposals that are relevant to the entire protocol. Ready to embark on your own path to conceptualizing Shorter?
Shorter Finance allows you to:
- Earn farming yield by staking single-sided idle tokens.
- Borrow tokens from pools for margin trading with leverage.
- Avoid losses when encountering dramatic spikes.
- Obtain passive income from governing activities and liquidations.
Shorter’s participants are classified into three major categories. Users may engage in all three roles at the same time to explore more possibilities. The Providers take farming profits by supplying liquidity for the loan pool. The Traders rely on loan pools to leverage funds to meet trading needs. As the stone of Shorter, eligible Rulers utilize their governing rights to vote proposals and become beneficiaries by liquidating the positions approaching closeout levels.
Earn from single-sided token farming as a Provider
In a token loan pool, Providers can deposit the single-sided tokens to earn rewards. As a Provider, you can try 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 some test tokens by following these steps:
- Click “Tutorial”
- On this new page, request Ether from the Rinkeby Testnet.
- Be sure to claim both ETH and USDT test tokens.
2. Navigate to the “Pools” section, then select and enter one of the sETH pools.
3. Approve and deposit some sETH tokens you would like to farm.
- Once you have confirmed the transaction in your wallet, check “My Portfolio” to see the stake rewards you may be entitled to.
Short any token as a Trader
The Traders can select a token loan pool to open short positions or manage the lifecycle of the positions in an accurate manner.
Simply launch the program as described in Steps 1–2 above.
3. To open a new shorter position, follow these steps:
- Type the number of test tokens, and hit on “Short sETH”.
- In the “Position Info” window, confirm the leverage and margin, then submit the order.
4. You can review your P/L by clicking “My Positions”. Selecting “Trade” will let you manage your position.
- You can “Sell Short” or “Buy to Cover” in the pop-up window.
How does Shorter Finance protect traders?
Let’s use a real-world example: On May 22, 2022, the cryptocurrency market fell suddenly and CELO’s price dropped to $1.50.
- On a centralized exchange, John opened a 5x leveraged position and sold short 100 CELO at $1.50.
Meanwhile, on Shorter Finance, Alice set up a position with the same parameters. - The price of CELO surged up quickly to $2.40 a few seconds later.
John must deal with force covering because the margin call can’t be fulfilled.
Alice’s position was designated as a legacy position, waiting for the Rulers to bid in a physical delivery method on arbitrages. - In a short period of time, CELO’s price plummeted to $1.423.
John was left without a position as a result of his overdrawn account.
However, Alice’s legacy position has been closed in the liquidation proceeding, and the realized P/L rate was set at +25%.
Here are a few key features:
- 100% on-chain transparent position lifecycle management
- Profitable full-featured pools for all token types
- Dramatic spikes protection via physical delivery on AMM
- Negative trading slippage reduction
- Direct lending pattern for physical delivery of cross-chain assets
- Flexible position holding duration of 1 day ~ 1000 days
What is most exciting to the community?
Shorter Finance will be a prominent DeFi narrative in the coming bear market, as we continue to integrate with IMs (e.g., Discord, Telegram), wallet applications, exchanges, and other objectives. Think of it this way: you are talking to someone else in the group, while your trading orders are dropped into blockchain through some letters and commands typed in 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 cent, you can benefit from this early knowledge.
- Shorter Finance Official Site:
https://shorter.finance/home/ - Learn more about IPISTR:
https://docs.shorter.finance/governance/tokenomics - Get more info about integrating:
https://docs.shorter.finance/dev-resource/integrate - Follow us on Twitter:
https://twitter.com/ShorterFinance