Sustainablewith APHAutomated Position Hedger
FWX with APH acts like a dealer, accepting any derivative orders from users without any opposition matching.
Benefits of APH
Real Borrowing DemandThe algorithm helps create real demand for borrowing in the lending-borrowing service.
Stabilize GrowthAPH helps stabilize growth for lending-borrowing services in the long-term.
Hedge RiskNo matter how much assets are fluctuating, APH hedges risk (from derivatives) to FWX.
How APH works
APH starts operating after a user submits a Long or Short position to FWX DDEX1
The protocol will borrow the pair of borrowed tokens from the LBPs (Lending & Borrowing pools).
2
Then, it swaps tokens with the same token of order and keeps it inside temporary vault until the positions are closed.
After the positions are closed, the protocol will reverse the mechanics back; swap, return, and give the profit to the user or take the loss from the user,
therebyeliminating the risks to the protocol.