iGain Protocol
  • iGain Protocol
  • Introduction
    • Basic Concepts of Options
    • A Decentralized Approach
  • The Core Protocol
    • Long and Short Tokens
    • Built-in DEX
      • Liquidity Provider
      • Advanced: Customized Proportion
    • Buy/Sell Options
    • Redemption
  • System Properties
    • Protocol Fee & Dynamic Trading Fee
  • iGain Universe
    • Impermanent Gain
      • Background: AMM & IL
      • Price Settlement
      • Hedge with Impermanent Gain
      • Gain with iGain
    • Interest Rate Synth
      • Introduction
      • Price Settlement
      • Fixed APY Borrowing/Lending
        • Examples
      • All-in-one Proxy
      • Underlying Token
  • Contracts
  • FAQ
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  • Instruction of mechanisms about purchasing Long/Short tokens:
  • Liquidation

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  1. iGain Universe
  2. Impermanent Gain

Gain with iGain

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Last updated 4 years ago

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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:

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:

（2）Instruction for exchanging before expiration:

Buy/Sell Options
Redemption
Buy/Sell Options