Show HN: Long and Short Any Crypto

#1

Post by zachrosen23 » Tue, Feb 21, 2023, 10:16 PM UTC

As an avid options trader, I fell in love with crypto. The volatility was super attractive. As I got more familiar with crypto, I wanted to trade more altcoins. But, most aren’t tradeable on centralized exchanges like Binance and Coinbase. Tried switching to decentralized exchanges and perp platforms like Synthetix and GMX, which just support blue chip tokens. Nothing lets me take leveraged positions in the altcoins I want.

Why do I have to wait for GMX or Binance to support BLUR perps? There’s got to be a better way, right?

Turns out, there’s not. So we built www.tumbyl.com - it’s a platform that lets you long and short any ERC20. Meaning, it’s the first one-stop-shop for crypto derivatives. You choose any token to trade, specify size, and confirm in wallet.

If you have any specific recommendations or tokens you’d like supported, just comment below. Would love to hear what you guys think! Thanks!

Re: Show HN: Long and Short Any Crypto

#2

Post by dwat1313 » Tue, Feb 21, 2023, 10:19 PM UTC

Concept makes a ton of sense, I find GMX super hard to use compared to robinhood for example

Re: Show HN: Long and Short Any Crypto

#3

Post by PaulHoule » Tue, Feb 21, 2023, 10:37 PM UTC

How is the short implemented?

Re: Show HN: Long and Short Any Crypto

#4

Post by zachrosen23 » Tue, Feb 21, 2023, 10:42 PM UTC

PaulHoule wrote: post #3

How is the short implemented?

Liquidity pool holds token X. User decides to short token X. Pool collects collateral from user, then market sells token X. User can buy token X back and return to pool at any time. If not returned and liquidation threshold reached, off-chain bot triggers liquidation for a % reward.

Re: Show HN: Long and Short Any Crypto

#5

Post by PaulHoule » Tue, Feb 21, 2023, 10:44 PM UTC

zachrosen23 wrote: post #4

PaulHoule wrote: post #3

How is the short implemented?

Liquidity pool holds token X. User decides to short token X. Pool collects collateral from user, then market sells token X. User can buy token X back and return to pool at any time. If not returned and liquidation threshold reached, off-chain bot triggers liquidation for a % reward.

So it runs a liquidity pool that plays the role of the hypothecation agreement in stock trading?

Re: Show HN: Long and Short Any Crypto

#6

Post by zachrosen23 » Tue, Feb 21, 2023, 10:48 PM UTC

PaulHoule wrote: post #5

zachrosen23 wrote: post #4

Earlier quoted context omitted.

Liquidity pool holds token X. User decides to short token X. Pool collects collateral from user, then market sells token X. User can buy token X back and return to pool at any time. If not returned and liquidation threshold reached, off-chain bot triggers liquidation for a % reward.

So it runs a liquidity pool that plays the role of the hypothecation agreement in stock trading?

Correct. The liquidity pool is a smart contract that accepts collateral + trade and stores liquidation threshold. If collateral ratio falls, a bot can trigger liquidation by calling smart contract, smart contract verifies that threshold has been breached, and if so will liquidate collateral to buy back asset.