Arbitrum Blockchain Traders Can Now Protect Against Impermanent Loss
GammaSwap developers say it is the first application to allow Arbitrum users to hedge against supplied liquidity by letting them go short on those positions.
Decentralized trading service GammaSwap today expanded to the Arbitrum network in a move developers say could benefit liquidity providers on the popular blockchain.
GammaSwap allows decentralized finance (DeFi) users to borrow liquidity provider (LP) tokens from automated market makers (AMMs) and “short” those LP tokens, hedging against supplied collateral or creating low-risk trading strategies. Shorting is a strategy for profiting from falling prices of an asset.
NOW
PLAYING
Binance.US Weekly Trading Volume Declines Amid…
Sam Bankman-Fried’s Lawyers Push for FTX Founder’s Jail…
FTX Bankruptcy Estate Sues Sam Bankman-Fried’s…
Former CFTC Chair Massad: Our Hand Will Be Forced…
On-Chain Data Provider Arkham Intelligence…
Story continues below
Recommended for you:
8 Days in November: What Led to FTX’s Sudden Collapse
Bitcoin Gives Up $27K in Sharp Tumble as Crypto Liquidations Top $100M
Diana Biggs: Building Early-Stage Ventures in Web3
A liquidity provider is a user who locks capital in a DeFi application to earn yield from the platform. AMMs are blockchain-based trading mechanisms that eliminate the need for centralized exchanges.
A GammaSwap representative told CoinDesk that the team plans to deploy on more blockchains, such as BNB Chain and Ethereum, and provide support for Uniswap LPs – which lock billions of dollars worth of tokens across thousands of trading pairs.
Edited by Sheldon Reback.
Newsletter Every Wednesday
Sign up for The Protocol, our weekly newsletter exploring the tech behind crypto one block at a time.
Enter your Email
By clicking ‘Sign Up’, you agree to receive newsletter from CoinDesk as well as other partner offers and accept our terms of services and privacy policy.
The post Arbitrum Blockchain Traders Can Now Protect Against Impermanent Loss appeared first on Crypto News Australia.
Filed under: Bitcoin - @ September 20, 2023 12:23 pm