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Discover your trading spirit: Bearish Strategy 🐻

November 2, 2022

Bearish strategy using Synthetify

Without a doubt, you’ve joined the crypto space with the hope of profiting - every one of us did. And even don't lie to yourself.

But the more you’ve learned about different apps, strategies, and protocols, the more it becomes harder to choose the right strategy for you because of all this new mess in your head.
We know how overwhelming all of this can be - trust us, we’ve been there too. We’re also aware that Synthetify can seem complicated to use because of its various functionalities.

That’s why we decided to write this blog post, explaining the bearish strategy - and showing you how to bring the most profit from them using our platform.
So, let’s learn!

Let’s start with theory: bearish strategy

To understand the topic clearly, you should get to know the theory first.

As the name suggests, the bearish strategy is all about taking advantage of the market’s lows and making gains by short selling.
Normally, when you hodl the tokens and their value decreases - you lose, but it changes when you have a short position. Short means that you bet the value of the chosen token will decrease and if your type proves successful - you earn.

Yes, it is as simple as that.

Why be a bear on Synthetify?

You have to believe us - we didn’t build this many features on Synthetify for your confusion, but rather to provide you with various ways to earn, some of them not available on other platforms.

If you’re thinking of becoming a bear on the market (or already are one), make sure to at least consider using your strategy on our platform.

In this blog post, we’ll show you three reasons why and ways to do it that we believe are the most successful, but who knows - maybe you’ll discover something even better on Synthetify on your own?

1 Short them all!

It's a truly effortless process. All you need to do is hold your entire debt in xUSD.

By doing so, you become an xUSD debt pool participant and play against all other synthetic assets. You bet their value will decrease, so you basically play short on them. It is an ideal solution for a bear market when token prices are (almost) certain to decline.

If you wish to fully understand the method, we recommend you review the case scenario we provided in our blog post with the Debt Pool explanation.

So, that’s what you could do:

  • Mint the debt and hodl it in xUSD.
  • Short all other synthetic assets.

Seems easy, doesn’t it?
Well, Synthetify is still the only place you could do it on Solana blockchain, thanks to our Debt Pool.

2 Use the power of leverage

This tool can work wonders in good hands. It allows you to operate with an amount higher than you actually possess - driving great profits, but you have to be also aware of potential risks.

So, in the case of shorting one chosen asset by using leverage, you increase your potential profit. However, as we mentioned before, you need to understand this tool before using it.

Luckily, we’ve got you covered with our blog post on this topic.

3 Let the debt swim in a pool

Are you a high APY enjoyer? If so, the last strategy should suit you perfectly.

When you hodl your debt in xUSD (meaning you’re short on all the other assets), put it in the xUSD-USDC pool. We recommend Sunny Aggregator for this - the app gives you 28% APY on this pair (data from 02 November 2022).

Also, what’s great, hodling your debt xUSD doesn’t stop you from other operations using this xUSD. You can put it in the pool, you can swap it on other token, and even buy monkey NFT.

Short positions are expensive, but not on Synthetify

Of course, there are other trading platforms that allow you to use at least some of the tactics we elaborated on above. Then, why use Synthetify?

Simply because we allow you to get more profit from every transaction because of the low fee and interest rates. If you don’t know what they are, they are basically a charge for making the most popular transactions on exchanges such as Binance or FTX.

On Synthetify, you don’t have to worry about it - make whatever transaction you’re up to and pay a really low fee for that - because of the debt pool mechanism, the interest rate on Synthetify is around 1% per year.

Are you a bear?

We hope this blog post made both bearish strategy and Synthetify usage clear for you. Although, if you don’t feel that bear is your spirit animal - don’t worry. Soon we’re going to publish blog posts about bullish and neutral strategies. LFG!

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