Short tokens on xDAI

#1

Hello fellow bees, :honeybee: :honeybee: :honeybee: :honeybee: :honeybee:

today there was a significant drop in the value of "Bricks on DAI’, the token that was imported from Ethereum testnet to xDai.

It made me think that currently the xDAI ecosystem lacks a way to ‘short’ (i.e., bet money on the value drop of) a token.

Shorting and Longing platforms would probably contribute to an healthier trading ecosystem, and make it harder to pump to the moon ‘shitcoins’ (note: I am not claiming the Brick is a shitcoin).

So I would like to ask if there is:

DISCUSSION: is there, potentially, some interest of the 1Hive community to bring to xDai-Network some borrowing platforms such as, for example, Aave (https://aave.com/) ?

EDIT: Very interesting news related to this post has just been posted in the xDai discord: https://perp.fi/ (allowing long and shorts) has chosen xDai for scaling its offer! cool!

2 Likes
#2

Hey @therfnoob!

We’ve talked a lot about other DeFi primitives we could deploy on xDai in the Tulip swarm, including Aave. It is not always trivial to deploy, but it is definitely something we are exploring.

Do you have any other DeFi primitives you would like to see? And why Aave specifically, or was that chosen as just an example?

Thanks!

1 Like
#3

Thanks for your answer and for informing us of (some of) what you do in the Tulip swarm. :honeybee: :honeybee: :honeybee: :honeybee:

it was just an example, one of the largest DeFi lend/borrow dapps in Ethereum (the other being compound?).

But as I linked, perhaps the new project (https://perp.fi/) coming to xDai will offer landing/borrowing capabilities? But I don’t know if it is fully decentralised or not.

Please keep us informed :slight_smile:

1 Like
#4

Yeah, I’ve added perp.fi to my reading list and I’ll figure out what it is about, because if others are deploying primitives then we don’t necessarily need to do so too.

We’re currently exploring Aave, Compound, Reflexer (https://www.reflexer.finance/), Balancer and others. We’re not going to deploy all of it of course, we’re just exploring what sort of primitives would be nice to have and what sort of value they might add to the xDai and 1hive ecosystems :slight_smile:

1 Like
#5

Speaking of useful primitives…

Perhaps it would be very interesting to have a transparent way to create MakerDAO Vaults in xDAI. So a contract that:

  1. takes care of moving assets (e.g.,“WETH on xDAI” to “ETH”) to Mainnet,
  2. create a Vault with MakerDAO, i.e., mints some DAI
  3. bring the DAI back to xDAI in xDAI-Network, ready to be used.

All of this can be done manually of course, but if we are talking about primitives, this would be useful for advanced Defi Tools. Also, flash loans.

#6

It’s not really technically possible to make complex transactions over the bridges, so we unfortunately can’t do that, although I do like the idea.

Flash loans would be something like Aave, although you can also technically use Honeyswap to perform flash loans, see: https://uniswap.org/docs/v2/smart-contract-integration/using-flash-swaps/