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.
by jnie January 27, 2022