AnyHedge on Paytaca - Hedge Or Long $BCH With 10X Leverage
Testing The AnyHedge Integration In The Paytaca Wallet
Two influential projects building on top of the Bitcoin Cash ecosystem collaborate to bring us a new and disruptive permissionless derivative app (pure-DeFi).
Non-custodial Bitcoin Cash and smartBCH wallet, Paytaca is developing services that promote on-chain adoption of P2P Cash.
The AnyHedge technology (developed by General Protocols) utilizes the smart contracts capabilities of the Bitcoin Cash network, allowing DeFi derivatives at the UTXO level.
We previously explored BCH Bull which also uses the Anyhedge protocol, offering access to up to 5x leverage to long or hedge BCH against various assets (XAU, XAG, INR, BTC, USD, and more).
The Anyhedge protocol integration in the Paytaca wallet presents the option to trade Bitcoin Cash with 10x-leveraged long or hedge positions.
AnyHedge on the Paytaca wallet
The user-friendly Paytaca wallet offers various options for Bitcoin Cash and smartBCH users.
BCH users and traders can download the Android wallet here. An IoS build is already under beta testing (accepting participation here).
The Anyhedge trading option is located in the tools option.
Downloading and funding the wallet takes no more than a minute.
Here we can Hedge and Long Bitcoin Cash against the dollar.
Testing Anyhedge On Paytaca
We previously tested the Anyhedge-powered BCH Bull app in my previous article :
The Anyhedge integration in Paytaca's Wallet allows higher leverage positions up to 10x.
The prefixed leverage is 10x although we also have the option for manual adjustment of low and high options.
From the trades I performed I used prefixed leverage (10x) with different duration and size.
The duraction of my long was 2-hours and it settled at a price a little lower:
As we can see from the AnyHedge contract report, I lost 0.011BCH. The outcome of my position is on bottom right (marked as red).
This loss includes the outcome of the trade together with the protocol fees. The opposing hedge profited by 0.01BCH form this trade.
A small fee of a few satoshi is the usual Bitcoin Cash fee, which traders in the Bitcoin Cash ecosystem don't need to calculate.
I also tested a Hedge (short) with a smaller amount (0.1BCH).
My Hedge position settled in profit for 0.00183BCH.
Some of my trades failed each time I tried to open a position while testing with various High - Low options.
The contract didn't seem to interact with certain properties, or perhaps there was an issue I wasn't aware of.
I've tested a long by setting the High option to 10,000% (100x) although I don't think the outcome changed. The contract still looks similar to the value of 1,000% as High.
Raising leverage to 100x should also increase the liquidation price to match, but in this case, with a 100x long, the liquidation price was $93,24 (80%). 80% is the maximum we can set as a liquidation price when longing.
I've also tested a Hedge position using 50% at the low setting and 200% at the high.
This trade should be similar to 2x (as I understand) with a liquidation price of $242,14.
The system is a little complicated, although Paytaca will soon release a deatiled guide explaining all options.
If we trade using all of our balance, we should manually leave a small amount (~500 sats) for network fees. Paytaca will upgrade its app and fix this minor issue that is easily manually adjusted.
The Anyhedge Premium
The Anyhedge premium was not visible anywhere during my trades. This detail should be available, though, upon opening a position. The premium (Anyhedge fees), can vary and can even reach negative at the low end, or a high percentage (3-4%), following its fees market process (perhaps even higher as demand for one side of the trade increases).
In all test positions I opened (short and long), the AnyHedge premium did not affect my trade, and the outcome was near what I expected.
In these trades, any premium I paid was low and did not affect the outcome of my position.
However, it will work in the users' interests to add information regarding the premium before we execute a trade.
General Protocols (GP) is the liquidity provider of Anyhedge, also responsible for its development. The protocol fees of Anyhedge follow a procedure that incentivizes takers on both sides.
In this sense, as volumes of long positions increase during a bull market, the fees will also increase on this side of the trade.
Conclusion
Testing every platform with small trades to experience the mechanics is mandatory.
With Paytaca, it shouldn't take more than a couple of attempts to get accustomed.
Similarly to BCH Bull, the current configuration of smart contracts does not allow exiting a position before the contract matures. Long or hedge positions are time-fixed.
A secondary market to trade positions is possible (in the future) with the release of the "Smart Tokens" Bitcoin Cash upgrade.
My experience was positive, and I recommend Paytaca both as a BCH wallet and a mobile trading app using GP's Anyhedge with a 10x leverage.
The leverage options should be explained in detail with the release of a guide to reduce confusion and make it easier to attract traders from top (centralized) derivatives exchanges like Bitmex and Binance.
Useful Links:
Social Media:
Paytaca ● Twitter ● Telegram ● Google Play
Also Read:
*Trading contains higher risk than investing.
*Custodial wallets and services contain the risk of losing your money - Paytaca Wallet and BCH BUll are non-custodial services (Always back up your private keys)
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Cheers for this Pantera, have been out of the BCH loop for a few months and it is good to see what is going on.