Hedgers
Plug into SYMMIO and start filling intents from DeFi users
SYMMIO essentially mirrors the risk on-chain, creating a unique hybrid model that balances the strengths of both centralized and decentralized systems. It serves as a marketplace facilitating third parties, known as hedgers, to execute orders. These hedgers can essentially be anyone, opening up a plethora of possibilities. They can operate on any exchange, be it Binance, Bybit, KuCoin, Bitfinex, or even run their own market-making or product structuring operations.
If you are interested to become a Hedger, feel free to reach out to us through Discord, or to contact directly the SYMMIO's team.
Example of a Delta Neutral Strategy
Institutional actors such as Market Makers can leverage ALPHA to execute their operations.
A simple and profitable strategy consists of filling an intent and opening the opposite position in a CEX. As such, the Hedger's PnL profile is delta neutral and its profits consist of an initial spread and a premium charged on the funding rate. In addition, cross-margining multiple positions with one user makes it possible to replicate this risk-free strategy while lowering the collateral requirement.
Trustlessness
Although adding offchain operations can be extremely profitable for institutional players, SYMMIO has been designed to stay fully independent of any external actions. The counter-party risk of any symmetrical agreement is always covered onchain by the necessary amount of capital.
It is essential to keep the following points in mind:
Educational Use: The above example is educational and not a comprehensive reflection of the entire SYMMIO protocol. It is structured to provide an introductory grasp of what it means to be a hedger and offers a primer on how one can undertake this role.
Avoid Misconceptions: Some readers have drawn the inference from this section that the SYMMIO system depends on Hedgers hedging themselves, leading to assumed trust dependencies on the Hedger side. However, this understanding is incorrect and could potentially lead to erroneous interpretations of the system's operation.
Top-Down Relationship: To reiterate and clarify, the relationship between a Hedger and the SYMMIO protocol is a top-down one. This means that whatever actions a hedger takes off-chain have no bearing on the on-chain events. Thus, there are no trust assumptions regarding the hedger side of things as they use off-chain systems to hedge themselves or the connection between these offchain systems and SYMMIO itself.
Independent On-Chain Contracts: The SYMMIO contracts function independently of any off-chain actions performed by a hedger. They operate exclusively within the on-chain environment, and are not influenced or impacted by any external actions.
The SYMMIO system is fully isolated: SYMMIO is fully isolated by any issues that may or may not arise from using offchain systems, centralized exchanges, trading desks or any other forms of hedging.
We strongly recommend you to familiarize yourself with these points as well as the SYMMIO documentation for a better understanding of the Hedger's role and its interaction with the SYMMIO protocol. It's important to interpret the Hedger section in light of these clarifications to avoid misrepresentations of the SYMMIO protocol's actual functioning.
Learn More about SYMMIO
Last updated
