After the statement of the head chef of decentralized exchange Sushiswap that it’s true they are running out of money and have reduced costs by half in the past two months.
Their last resort is offering a proposal where Sushi wants to expand the treasury by redirecting all the shares/rewards of xsushi stakers.
A proposal that benefits the treasury but will reduce incentives for Sushi Stakers and could result in a further decline in price.
What is xSushi?
Sushiswap allows its users to stake their Sushi tokens and receive xSushi in return. This could then be staked in the xSushi pool for additional rewards. In the current proposal, all those rewards will be redirected for at least one-year to the Sushiswap treasury.
What is the ‘Sushiswap’ treasury?
A treasury refers to a reserve of cryptocurrency that is owned and managed by an organization, in this case Sushiswap. The purpose of the treasury is to provide a source of funds that can be used for various purposes, such as investing in other cryptocurrencies, paying salaries or expenses, or providing liquidity to support the organization’s operations.
Where to short Sushiswap – SUSHI?
To short sell SUSHI, you would need to open a margin/derivatives account with a cryptocurrency exchange that offers short selling. Most major crypto exchanges, such as ByBit, Huobi or Binance offer short selling as a service.
How to Short Sushiswap – SUSHI?
In case you want to hedge your Sushi positions or just want to speculate on further decline in its price, you can do so. To short Sushiswap – SUSHI, you will need to follow these steps:
- Open an account on ByBit that allows short selling.
- Deposit funds into your account. Keep in mind that short selling typically requires a margin account, which means you will need to have a certain amount of money available to borrow the Sushiswap – SUSHI you plan to short.
- Find the SUSHI ticker symbol and locate the current price.
- Place a sell order for the number of SUSHIs you want to short at the current market price. This will create a short position in your account.
- Monitor the price of Sushiswap – SUSHI and the value of your short position. If the price decreases, your short position will increase in value.
- Close your short position by buying back the same number of Sushiswap – SUSHIs you sold short. This will effectively “cover” your short position and return the borrowed Sushiswap – SUSHI to the lender.
What are the risks of shorting?
Keep in mind that short selling carries a higher degree of risk than traditional buying and holding, as you can potentially lose more money than you initially invested if the price of SUSHI increases. Also a delisting could happen where SUSHI is removed or “delisted” from trading on the exchange. Always do more research when planning to position yourself in these markets.
The post Sushi in Need: How to Hedge or Short? appeared first on YourCryptoLibrary.
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