# The Problem

<figure><img src="/files/Rb8flpvGT1SpUqXwYrHB" alt=""><figcaption><p>Sad Pepe</p></figcaption></figure>

### **Retail keeps becoming exit liquidity!**

**There are currently 2 unmet needs in market**<br>

1. Hedge token downside without capping its upside

Currently, no platform allows users to hedge their token’s price downside risk affordably while still retaining potential upside gains. No lending protocol/staking mechanism or other token LPing platforms anywhere in Defi currently offers token price protection. \
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Using perpetuals to hedge by shorting exposes you to losses if the token price rises. Meanwhile, existing options exchanges have deep liquidity only for ETH and BTC, options for other tokens are either unavailable or priced very inefficiently. \
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Moreover, there’s currently no simple way for users to protect against token downside for just 20–30% of potential losses while paying low premiums. Creating such a payoff with options demands advanced knowledge of derivatives, constant position monitoring, high premiums, and margin requirements. None of which are easily composable in DeFi or compatible with yield-earning strategies\
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2\.  Earn yield on tokens without dilution or inflation

Currently, the only way to earn real dollar yields on tokens is by LPing those tokens in AMMs. \
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Users are looking for other ways to use their tokens across DeFi and earn high yields.&#x20;


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