Definitions by jnie
Soft-hedge
An uncommon strategy seen with cryptocurrency. You are hedging some token without selling the token. e.g. If I’m in for the long-term and I want to hedge against token x price going down, I can predict the price going down in the market and stake my token x. If the price does go down, I can receive additional rebase rewards from people who predicted otherwise. "Soft" is used because contrary to how leverage works, you aren’t at risk of losing your principal.
Soft-hedge by jnie January 27, 2022