Swap Layer
Understanding Straight Swaps and opening position in Hedgemony
Swap Layer — Straight Swaps and Opening Positions
Core Mechanism:
The swapping mechanism involves a DEX router and aggregator which leverages an array of reliable, redundant AMM and DLOB market providers. Hedgemony's antifragile architechture automates workarounds when faced with shortfalls or exploits to individual providers.
Straight Swaps
Users invoke a Straight Swap when using the Hedgemony swap function without opening a Position. This is the most friction free method of interacting with the protocol. No enrollment process or contract account is necessary, and no protocol incentives are given to users who only seek to interact on this level. No action is recorded in the UI and future portfolio allocation reversions cannot be automatically conducted like those with open Positions.
Opening Position
When opening any type of position through Hedgemony, users are required to swap at least one asset for another (or delegate a previously held asset into the yield layer). This is most commonly done by:
- Swapping a stablecoin or volatile asset for something else that is volatile
- Swapping volatile assets into stablecoin
Edge Cases:
Though there are edge cases where stable to stable swaps are of interest, they are least common and thus the least attention will be given to them in this documentation.
