ELI20 AnyHedge (and a usecase)
What's AnyHedge? It's non-custodial risk-trading contract It lets you to trade the volatility of USD price of BCH.
Say I'm a merchant and I want to accept BCH, but it has several % swings on the daily. Sure, positive swings are cool, but negative swings really kill the business. I'd like to accept BCH without the risk of not being able to pay my suppliers and employees at the end of the month.
Say I'm a trader. The bigger the volatility, the bigger the (potential) profits. I want more volatility/leverage.
If we're a merchant and a trader our needs and business models are different. AnyHedge lets the merchant stabilize the USD value of their holdings, while increasing the volatility/leverage exposure for the trader in a mutually beneficial contract.
How will it benefit BCH?
- It has a real usecase for Merchants and Traders, so it has potential to increase adoption for both
- It's DeFi on BCH with the UTXO model (with all the advantages and disadvantages it has compared to ETH)
Does this help?
[link] [comments]