Soon you will be able to arm yourself with Pool Protection which will allow you to protect your pool against impermanent loss. Whether you are bullish or bearish, we have the options for you 😉.
How Does Pool Protection work?
Pool Protection is our newest feature on PowerPools that will be released soon. It works with the other pool automation rules (Drift, Reinvest). The Pool Protection rule will allocate yield towards buying options regularly on the upper or lower end of your pool's range, so in case the spot price moves too far down, or up the range, you'll still be able to make back the impermanent loss in value from options profits.
You can choose to buy call options (bullish) or put options (bearish) or both call and put options, depending on your view of the market. And you can also decide how far out you want the protection to be and whether you want to hedge the full amount of your pool or just a percentage.
Disclaimer: This is not financial advice. The features described in this article and the information provided does not constitute investment advice.
We'd love to hear from you! Want to see some new features? Send your feedback to [email protected] anytime!