🛍️Buy & Sell & Swap

This section will detail the main processes for buying and selling the corresponding tokens.

Buy(Mint)

Users can use USDC to buy our HedgePlus Token, this process often referred to as minting or staking.

When users purchase HedgePlus or other shares tokens on our project website, the site first sends a request to our backend server. Upon receiving the request, the server obtains a quote from oracles or CEXs to determine how much USDC can be exchanged for 1 HedgePlus, and returns this information to the user. If the user agrees to the exchange rate, they need to sign the transaction, which includes transfer details. Users can view the detailed quote information through their wallet.

The signature is then sent to our server, which verifies the signature and checks the validity of the quote. Finally, it submits the transaction to the blockchain. Simultaneously, we establish corresponding positions on CEXs to hedge.

Once all processes are completed, our smart contract mints HedgePlus and sends it to the user's address.

Many details are involved in this process, such as quote expiration and position opening failures. Our servers are designed to handle these situations properly, ensuring the safety of users' funds.

Sell(Redeem)

The process of redeeming user assets is similar to purchasing. First, users receive a quote. If they agree to the quote, they need to sign it. Subsequently, the user's HedgePlus Token is burned, and our backend server closes the corresponding positions. Finally, the assets the user wishes to redeem are transferred from the hot wallet to the user.

For enhanced security, users' HedgePlus tokens will be held in a transit wallet for a 7-day period to prevent malicious redemptions or potential bank runs. After the 7-day holding period, users can claim their USDC directly through our website.

Swap

More conveniently, users can directly exchange our HedgePlus in liquidity pools. The differences between the two are as follows:

1. The Swap price is guaranteed by AMM or other external market, while the Buy price is determined by centralized exchanges and quoted through our server.

2. The Swap process is faster and more streamlined, and supports a wider range of assets.

Due to market dynamics, users can arbitrage to ensure that Swap and Buy prices are essentially the same. Specifically, users can perform the following arbitrage operations to smooth out the price differences.

If HedgePlus is worth LESS in an AMM or other external market than from our website directly

When HedgePlus worth LESS in external market

Users can purchase HedgePlus at a lower price in external markets and subsequently sell it on our official website, profiting from the price difference.

If HedgePlus is worth MORE in an AMM or other external market than from our website directly

When HedgePlus worth MORE in external market

Users can purchase HedgePlus at our official website, and subsequently sell it on external market, profiting from the price difference.

Through this mechanism, the external market price of HedgePlus will remain almost consistently aligned with the official price.