basically reduces your volatility exposure to ETH.
Better to execute the short on a market which enables lending and borrowing from the same position such that you can still earn lending yield on your stable portion, while also shorting.
Keeping it to a quarter seems like good padding as exposed to a big upside swing and don't want to get liquidated. Probably can squeeze a little more short exposure out if using something like DeFi Saver to autoprotect the position from sudden swings.
It does increase gas costs so just keep that in mind when sizing your hills' tick spread.
What if u go even further by going short in the segments to minimize directional exposure, to a quarter? Would that make sense?
it can make sense to do that.
basically reduces your volatility exposure to ETH.
Better to execute the short on a market which enables lending and borrowing from the same position such that you can still earn lending yield on your stable portion, while also shorting.
Keeping it to a quarter seems like good padding as exposed to a big upside swing and don't want to get liquidated. Probably can squeeze a little more short exposure out if using something like DeFi Saver to autoprotect the position from sudden swings.
It does increase gas costs so just keep that in mind when sizing your hills' tick spread.