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Compound those profits on the way up mate |
Necc protocol inverse perpetuals give a profit payout in the speculated volatile token.
WETH, WBTC, WNEAR etc.
NDOL Stablecoins can still be used as collateral to open positions but the payout will be in the non-stablecoin volatile token.
Funding rates are dynamic percentages that open positions will have to pay every 8 hours based on the borrowed collateral utilisation rates with the aim to rebalance usage following volatile periods.
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Below is an illustration of how the Necc protocol can be used for inverse leverage longs with amounts of payments:
- The Price of ETH is 1000 USD
- Alice mints 1000 NDOL by supplying 1 ETH to the system
- The system now has 1 ETH that is borrowable for an inverse long position
- Bob deposits 1 ETH and opens a 2X ETH long position
- The system now has 2 ETH
- The price of ETH goes up 100 USD, one ETH is now worth 1100 USD each
- The system now has 2200 USD worth of ETH
- Bob can be paid 200 USD worth of ETH in long profit
In addition to funding rates, staked NECC yield tokens are** **distributed to Alice for staking her NDOL.
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Below is an illustration of how the Necc protocol can be used for inverse leverage shorts with amounts of payments:
- The Price of ETH is 1000 USD
- Alice mints 1000 NDOL by supplying 1 ETH to the system
- Bob mints 2000** NDOL by supplying 2 ETH **to the system
- The system now has 3 ETH
- Chris supplies 1 ETH and opens a 2X ETH short position by reserving 1 ETH
- The price of ETH goes down 100 USD, one ETH is now worth 900 USD each
- The system now has 3600 USD worth of ETH
- Chris can be paid 200 USD worth of ETH in short profit