# Bullish accumulation

Bob owns 100 ETH and wants to accumulate more of it. Lending out ETH for a month is not an option as it only yields 0.01%. Bob is willing to accept some small risk of losing his ETH in exchange for a higher yield. His conservative estimate is that ETH/USD will be above $2'000 in a month. The current ETH price is $3,500.

Alice is bearish on ETH/USD and believes that the price will be below $2'000 in a month. She would like to benefit when the price goes down.

### :gear: Pool configuration

Bob uses the DIVA App to create a long position that is going to return his deposited collateral when ETH/USD stays above $2'000. Bob's yield comes from selling the short position to Alice. An example configuration is provided below: 

![Example configuration of a low risk yield product using the DIVA App.](/files/rAOskPf29pIAHCKNNUX6)

### :handshake: Sell short position tokens

After creating the pool, Bob sells all 100 short position tokens minted for a total of WETH 3 to Alice and keeps the long position tokens. The payoff profiles for Alice and Bob are depicted below:

![Bob's payoff profile](/files/qyBjqNEK8F6DvjVsog49)

![Alice's payoff profile](/files/ny5jpUFDmotC6jV3h3el)

### 💵 Payoff scenarios

1\) ETH/USD >= $2'000:

* Bob can redeem his collateral of 100 WETH and keep the premium of 3 WETH from selling the short position tokens to Alice \
  -> <mark style="color:green;">**net gain for Bob: WETH 3**</mark> (+3% in a month, +36% in a year).\
  -> <mark style="color:orange;">**net loss for Alice: WETH 3**</mark>

2\) ETH/USD = $1'250:

* Bob can redeem WETH 25 of his collateral and keep the premium of 3 WETH\
  -> <mark style="color:orange;">**net loss for Bob: WETH 72**</mark>\
  -> <mark style="color:green;">**net gain for Alice: WETH 72**</mark> (24x on her investment)

3\) ETH/USD = $800:

* Bob received a premium of 3 WETH and loses the initially deposited collateral of WETH 100\
  -> <mark style="color:orange;">**net loss for Bob: DAI 97**</mark>\
  -> <mark style="color:green;">**net gain for Alice: DAI 97**</mark> (32.3x on her investment)


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.divaprotocol.io/use-cases/yield-optimization/bullish-accumulation.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.