Using Templates to Create Positions
Francium offers three Templates to assist users in opening farming positions: 3X Long Farming, 3X Short Farming, and Neutral Farming, of which the Neutral Farming is divided into Pseudo-Delta Neutral Hedging Strategy(3X) and Borrow Farming: Borrow Non-Stable Asset(NSA) to Farm(2X). You can choose different templates based on your own forecast of the market.
Different templates apply to different market forecasts:
1. 3X Long Farming
If you believe the price of the Non-stable Asset(NSA) will increase in the future, you can choose 3X Long Farming to borrow USDC. Your Equity Value will increase when the NSA price rise (or decrease when the price drops), which can be seen from our farming simulator.
2. 3X Short Farming
If you believe the price of the NSA will decrease in the future, then you can choose 3X Short Farming to borrow the NSA. As the simulator shows, if the NSA drops within a specific price range, you will make a profit.
3. Neutral Farming
Pseudo-Delta Neutral Hedging Strategy(3X)
This strategy takes a long and short position in an asset pair simultaneously to minimize the effect on your portfolio when the asset’s price fluctuates. With this Delta-neutral strategy, you can expect a higher capital utilization rate and profit.
Borrow Farming: Borrow SOL to Farm(2X)
This strategy has no long or short exposure when the asset’s price fluctuates, which is similar to the above Pseudo-Delta Neutral Hedging Strategy(3X), but with a different leverage ratio. 3X neutral farming is relatively riskier and more rewarding than that of 2X.
The following is a tutorial on how to use the template to open positions (using PDN as an example)
How to open PDN positions
Connect your wallet to Francium.
Choose your farming pool (using SOL-USDC pool as an example), then click "Farm".
3. Click the “Neutral Farming” template in the top right-hand corner and then choose “Pseudo-Delta Neutral Hedging Strategy(3X)”.
4. The default deposit asset is 100 USDC after choosing “Pseudo-Delta Neutral Hedging Strategy(3X)”, you can adjust it to the amount you want to invest.
5. There is a default stop-loss of 10% when using the PDN template on Francium, and you can choose to turn it off or change the setup.
6. If you click on the “Simulator” button, you’re able to know your estimated profit & loss under the change of SOL price (Please note that the default Invest Days is 15).
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