Downside bet

How to benefit from the downside of an asset with one single transaction

Alice believes that the Bitcoin price will drop from its current level of $37โ€™000. Shorting an asset the traditional way is pretty cumbersome as it involves four steps: 1) borrow BTC, 2) sell it for USD, 3) buy BTC back (at hopefully lower prices), and 4) give back BTC to the lender plus some interest. Alice wants a simple way to participate in the downside of BTC.

Alice could use the DIVA App to create short positions with one of the below example shapes.

โš™๏ธ Pool configuration

The example configuration for the above three patterns

๐ŸคSell long position tokens

After the creation of the pool, Alex would sell the long position tokens and keep the short position tokens.

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