Gain with iGain

Not only can iGain help liquidity providers to hedge potential losses but also can serve for speculation purposes. Since the price of Long/Short tokens might fluctuate according to people's anticipation of IL, there would be room for profit whenever the price of altcoin changes.

If someone expects that the IL would be lesser than now while the current round expired, he could buy the Short tokens with an expectation of earning a profit at the due date.

Instruction of mechanisms about purchasing Long/Short tokens:

Buy/Sell Options

Purchasing Short tokens would change the proportion of the pool, which result in a higher price of Short token and a cheaper price of Long token.

Liquidation

There might be profit or loss for Long/Short token holders because of the price fluctuation of Long/Short tokens. Investors may exchange Long/Short tokens back into DAI in two ways.

(1) Instruction for exchanging at a settled price after expiration:

Redemption

（2）Instruction for exchanging before expiration:

Buy/Sell Options