Using futures to hedge and also take advantage of carry trades as well as the funding rates on certain positions where you can hold say arbitrum long and get paid to hold it long due to the imbalance. If you already plan on or have a long position and plan on holding it in arbitrum you might want to look at buying the futures and then you get passive income of 45% on your position and similar to the same return in % gain or loss just the longer the trade is in your favor where the longs get paid you can get passive income streams to hold your positions in futures and collect the funding fees. This can be done on other pairs as well with negative funding rates and the opposite for any short positions to hedge instead of sell say btc if you dont want to sell it for tax purposes or you want to just hedge during periods of expected volitility and earn a funding rate while you hedge the btc you own with a % being put up as collaterol to go short btc and earn the funding rate to be market neutral then you get the funding fees and are making money on the long and short btc position as well as any additional fees you earn from where the rest of the btc is deposited like i earn an additional few percent on top of my btc in lending fees on dolomite plus dolomite xp as well as a arb drop of oARB for arb that matures at a zero cost when locked with equal value in arb for 40 weeks then they all unlock and you get 2 arb for each one locked. Having positions like this that create cash flow can be a great way to fund and maintain and funding needs for you splinterlands account and gameplay and it is less tied to the game economy so it will act as a hedge for the fluctuations in the gaming asset prices as well as you will earn more steady of income using more stable tokens and protocols than spl which is a smaller market cap a lot more risk than say btc and postions in eth as well as usdc to earn yield. The yield earned by these positions is a lot more stable and you can use it to dca into the spl market at good times.
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splinterboost (60) 6 months ago