The new phase of Binance MPC wallet's new offering will start at 6 PM this afternoon and end at 7 PM. Brothers, there’s another luxurious pork trotter rice meal.
The new offering requires using $BNB , which is not a stablecoin. So generally, we need to assess the impermanent loss risk due to price drops, but don’t panic, there’s a way!
For this situation, we generally have two schemes: one is low-leverage contract hedging, and the other is borrowing coins through staking.
First, let's talk about low-leverage contract hedging. Generally, this scheme is suitable for projects that require long-term token staking. The principle is to buy the corresponding token spot and then short with low leverage. Typically, the funding rate is positive, allowing you to collect funding fees, which is suitable for long-term plans.
As for borrowing coins through staking, I think it is more suitable for the short term. On platforms that support lending corresponding tokens, you can borrow the required tokens by collateralizing assets and return the borrowed tokens at any time, just needing to pay a little interest. However, there is a collateralization rate for borrowing through staking, which is typically set between 70% to 80% by default, and can be manually adjusted lower. The lower the collateralization rate, the lower the risk of forced liquidation, but the required funds will be higher.
This phase requires using $BNB for the new offering. We can go to a platform that supports borrowing BNB (I use Zhi Ma for lower fees), stake stablecoins, then borrow BNB, transfer it to the Binance Web3 wallet, stake BNB, and wait for the new offering to end before returning the borrowed BNB back to the exchange.
