But the role of LYF is not only that. If you are a keen trader, you may think that if the price of a certain token falls within a certain period of time, the best way to make a profit from it is to go short this token. The usual steps are: when token A's price is P₀, borrow X token A, sell X token A for Y token B immediately, and when token A's price drops to P, buy X token A back. By doing so, the profit you get is X*(P₀-P) token B-borrowing interest. With LYF, there is a little difference. If you are holding X token A and open a 3X leverage position, you will automatically borrow 2X token A from the lending pool, and half of total token A, 1.5X of A will be swapped to token B immediately, and 0.5X of token A short exposure is generated instantly. With traditional shorting, you can only earn a profit from a price drop, but with yield farming, you can also earn LP tokens apart from the price drop. It’s a safer method to short a certain asset since the LP price and the token price have a square-root relationship. You might doubt whether it is a good method to short, so next we will show you the performance of shorting with LYF by using the same model.