Where AutoHedge Can Go Next: Future Pairs and Use Cases

We’re still excited for the initial release of AutoHedge. If this sounds new to you, go read our previous post where we talked all about it, how it works, and how it lets you earn yields safely and sleep soundly. You can also find a step-by-step guide on how to use it.

To recap, AutoHedge is the way to LP in a downturn with an automatically hedged position that keeps earning APY. For example, LP on an ETH/DAI pool with $100 and if the price of ETH changes, you still have $100 and keep your APY.

But there’s more… There’s so much more we can do with a tool like that. In the near future, we’ll be upgrading AutoHedge’s capabilities to make sure degens get the most of what’s possible with a safe, yield-bearing, delta-neutral position.

Without giving too much away, let’s look at what’s possible for future AutoHedge releases:

  • Leverage: We’ve already made it possible for you to hold a yield-bearing LP token that behaves like a stablecoin. Of course, this can be taken a step further. The AH LP token can be used to borrow more assets with the collateral requirements of a stablecoin. Essentially, you could leverage your AH LP positions very safely with up to 10x leverage. If the AH pair has 15% APY, then you could get up to 150% APY while still being immune to the price movements of the market.
  • Volatile-volatile pairs: AH LP positions are currently based on stablecoin-volatile pairs, such as BUSD-BNB, USDC-ETH etc.. This will not always be the case, though. The ability to have hedged LP positions on volatile-volatile pairs like ETH-MKR is in the works. Essentially, this would create assets (AH LP tokens) that behave as decentralized, yield-bearing stablecoins made out of volatile assets.  The AH LP tokens for volatile-volatile pairs can then be used as collateral for a brand new stablecoin - one that is backed by the Uniswap DEX itself, not the Uniswap token, where trading fees mean that the collateral backing the stablecoin only ever goes up in value. This would be the first ever self-collateralizing stablecoin. No Terra ponzinomics necessary!
  • createPair: AutoHedge went live with the AutoHedge-BUSD-WBNB and we’re definitely adding more pairs over time. What’s even more interesting, however, is that there is a factory contract that contains a createPair function available to developers looking to add their own pairs. It’s similar to how adding new pairs on Uniswap V2 works, with some caveats that will be addressed in future upgrades. This feature will also support volatile-volatile pairs in the future.

Stay tuned for upcoming updates on these features by following Autonomy Network on Twitter. In the meantime, be sure to refer your more conservative degen frens to AutoHedge and earn a 0.3% fee on each deposit made through your link.

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