as of 18/06/2023
The act of shorting a token is betting against it; another way to explain it is that you can make a profit if the value of the token decreases.
To short EGLD, you can supply USDC as Collateral and Borrow EGLD against it. If someone Borrows 10 EGLD, they would then sell the 10 EGLD for USDC. If the price of EGLD was to fall, they could buy back the 10 EGLD for less USDC, thus closing their Borrow position and gaining the difference.
I) First of all, Connect Your Wallet(1) and then select the USDC Money Market(2).
II) "Supply" USDC.
III) "Activate it as Collateral".
IV) "Take a loan" in the form of EGLD.
V) Go to "xExchange" and sell your EGLD for USDC.
VI) Wait for the EGLD price to drop and then buy back EGLD with USDC.
VII) Go to the Hatom Lending Protocol, "Repay your Loan", and pocket the difference.
as of 17/06/2023
This segment will look at few examples how a user can use a Lending Protocol to his advantage. First, reading the Lending, Borrowing, and Liquidations section is essential to understand better the risks involved.
as of 18/06/2023
Leverage is the act of using a loan to buy more of an asset, therefore increasing exposure and potential profits (or losses).
To leverage a long EGLD position, you can supply EGLD and take USDC as a loan. You can then use that USDC to buy more EGLD. If the price of EGLD were to rise, a fragment of the EGLD bought could be sold to pay off the USDC loan, therefore pocketing the additional EGLD as profit.
I) First of all, Connect Your Wallet(1) and then select the EGLD Money Market(2).
II) "Supply" EGLD.
III) "Activate it as Collateral".
IV) "Take a Loan" in the form of USDC.
V) Go to "xExchange" and sell your USDC for EGLD.
VI) Wait for the EGLD price to rise and buy back USDC with EGLD.
VII) Go to the Hatom Lending Protocol, "Repay your Loan", and pocket the difference.
as of 18/06/2023
If you can create a "Long" or "Short" position that uses leverage, you can Cycle this leverage to increase further the exposure of that position. If a user makes a "Short Position" against EGLD, he would supply USDC, Borrow EGLD against it, and then sell the EGLD. To start a Leverage Cycle, they would supply the USDC generated from the EGLD sale as additional Collateral to get a loan of even more EGLD and repeat the process many times. Each Collateral Supply will permit a smaller Borrow position, but there is a limit on the number of Cycles performed.