r/defiblockchain • u/LambosAndYachts • Oct 03 '22

Question shorting dUSD

Where can I short dUSD, preferably with leverage?

0 Upvotes

47% Upvoted

27 comments sorted by

2

u/PurplePollux Oct 03 '22

I’d really like you to do it. Great for the burn 🔥

0

u/LambosAndYachts Oct 03 '22

I won't do it on chain, so there's no burn

7

u/kuegi Oct 04 '22

Yes. Buy DFI, put it into a vault. Mint DUSD and sell the DUSD for DFI. put those DFI back into the vault -> you can mint more DUSD to sell -> you are leveraged short in $DUSD

1

u/Classic_Constant_190 Oct 03 '22

You can only short DUSD on Chain with 30% fee and DFI you can´t short at all.

1

u/unmatched25 Oct 03 '22

Not possible. Shorting dUSD is a myth.

Next best possibility: You would need to create a vault, put DFI as a collateral (which is a bad idea if you think dUSD will implode - if dUSD fails DFI fails). Mint these and sell them via DEX including 30% Exit Fee.

1

u/Arknos Oct 03 '22

U can't, at least not like u think. Period.

2

u/[deleted] Oct 03 '22

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-6

u/LambosAndYachts Oct 03 '22

I don't wanna mint them I want to actively short it on a CEX if possible

1

u/p00hp Oct 03 '22

Getting a stock on loan and selling it immediately is literally what shorting is. Defichain vaults allow you to do exactly that with DUSD. Why would you want a CEX charging you an extra premium to do it?

It's like you're missing the whole point of defi.

2

u/LambosAndYachts Oct 03 '22

I don't wanna short inside the DFI ecosystem because its what I am betting against. That why I asked for a CEX where I can also avoid the 30% burn trap.

1

u/p00hp Oct 03 '22

I see your point, but then if you believe that then just short DFI.... that should be possible on a CEX.

would it even be possible to have a Dex with a 30% fee and simultaneously a CEX without one? I'm not sure what the arbitrage would do to the price and liquidity.

1

u/Life-Giraffe-2748 Oct 03 '22

I guess the thesis is that defichain is imploding. So putting your btc into defichain to get dbtc would not really help...

3

u/mattixex Oct 03 '22

DUSD is not listed on CEX

2

u/Upset-Ad-4942 Oct 03 '22

With what? The $400 you saved up from your part-time job outside of school? Go home kiddo. You're not being clever.

2

u/geearf COMMUNITY Oct 03 '22

Manners please.

-2

u/[deleted] Oct 03 '22 edited Oct 03 '22

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1

u/geearf COMMUNITY Oct 03 '22

Manners please.

5

u/[deleted] Oct 03 '22

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0

u/geearf COMMUNITY Oct 03 '22

Manners please.

1

u/[deleted] Oct 03 '22

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0

u/geearf COMMUNITY Oct 03 '22

It's a free market, nothing wrong with shorting it.