By Wowdegen
Decentralized exchanges like Uniswap, Pancakeswap, Quickswap and MDEX reinvented the way people trade digital assets and receive profit from trading if assets’ prices go up.
WOWswap works on top of those decentralized exchanges and offers the simplest tool to maximize profits with 5x leveraged long-swaps.
But is it possible to receive a profit when a token’s price goes down?
The answer is “YES” — it’s called shorting. When you short a token, you loan it from someone and immediately sell that token: Short = Borrow + Sell.
If the token’s price goes 📉, you buy it back later for a cheaper price, return the loan, and keep the profit💰.
“Truth is like poetry. And most people f*cking hate poetry” — The Big Short
At the moment not a single major decentralized exchange offers shorting 🙁. In other words, they allow you to profit from the🐂 market, but have nothing to offer for the 🐻 market.
As for centralized exchanges, many of them support shorting of some popular coins, but on those platforms you have no control over your crypto 😱 and no power over trading rules and procedures😡. This is NOT how we see the future of finance.
WOWswap is fully committed to decentralization 👼, and therefore today we are happy to introduce decentralized leveraged short-swaps 🎊
HOW IT WORKS 🧐
Remember the last time you had a strong feeling that “this coin is totally overpriced”? So, now you can easily turn your feeling to hard cash (assuming your feeling is right).
Let’s assume that token A is currently traded on Pancakeswap at $10, and you decided to short it for 100 BUSD (your money) with 5️⃣X leverage. It means that you will borrow A token for 500 BUSD (50 tokens). On WOWswap you will borrow these tokens from the lending pool, created by individual liquidity providers who deposited A tokens to the lending pool.
When you make a short swap you will sell 50 borrowed A tokens and receive revenue of 500 BUSD. This revenue + 100 your BUSD (600 BUSD in total) will become a collateral for your short position.
