Short-selling makes volatile markets more stable, and would allow shitcoins to be more accurately priced. There are few solutions for short-selling with smart contracts, and we thought it would be a great way to test out the new Dharma Protocol.
What it does
To short sell a coin, X coins at today's price, and then sell them in Y months at the new price. We lend you the principal, and then ask for 1.5x DAI as collateral. To unlock your collateral, you need to pay back the loan.
How we built it
1) Fill out web form to pick parameters for contract 2) Add those to terms contract on-chain 4) Create debtOrder object, get issuance hash 5) Lock up collateral in our smart contract 6) Fill order (find borrower)
Challenges we ran into
Dharma.js is brand new, and we had to fix some bugs along the way.
Accomplishments that we're proud of
We're proud to be (likely) on of the first apps on top of Dharma. Rolled our own smart contracts for shorts, and designed collateral mechanism. Made a nice relayer interface.
What we learned
Made by Max Wolff, Zach Zeleznick, and Rich McAteer
What's next for Short selling on Dharma