Case Study: 50% USDC APY for selling tokens: Conditional sale met
Lets say you have 400 $UNI tokens, which are valued at $15 dollars today. You want to create an agreement to sell those tokens within the next 3 months if they reach $25 dollars. You also want to get paid an additional fee for making this agreement.
If you pay me $750 USDC today, I will agree to sell you 400$UNI at $25 each anytime in the next 3 months if you execute this agreement.
In this case, if $UNI reaches say $35 per token, the person who buys your agreement exercised it and purchase the tokens from you for $25 per token. You'd have sold each of your tokens for $25 USDC per token + the $750 they paid you upfront. You profited $4,000 USDC on your token sale along with the additional $750, or yield of 12% for 3 months => 50% APY.
For the buyer, they are able to buy the 400 $UNI at a slightly discounted rate and make $10 profit per token, giving them a net profit of $3,250 USDC (gross profit 4,000 less the 750 they paid upfront). Given the Buyer put up $750 in capital and profited $3,250, that's a 433% yield implied 1,757% APY.
YOU CAN DO CREATE THIS CONTRACT FOR ANY TOKEN IN UNDER 5 MINUTES ON HEDGEY.
Last modified 2mo ago
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