Shorting

Short sellers are able to use supported collateral to initiate short positions on Beta Finance. Short selling on Beta Finance is in principal leveraging a Borrow on Beta and immediately selling the borrowed token, and thus follows the same collateral and LTV requirements as a borrow.

On the surface, short sellers interacting with Beta Finance's "1-Click Short" tool only need to enter the amounts of the underlying token to be shorted and collateral, select the DEX to swap through, and click a button to initiate the position.

Behind the scenes, the process begins where Beta Finance will borrow the underlying token from its respective money market for you, checking sufficient collateralization. The borrowed token is then swapped through the specified DEX (currently supporting Sushiswap, Uniswap V2, and Uniswap V3) to the collateral token used. The newly swapped collateral token is then staked with the principal collateral used in the short position.

For short sellers on Beta Finance, there are 3 simple steps to follow to initiate a position:

1. Select the token money market for which you would like to and click the "Short" button. Users will also be able to search for specific tokens by contract address.

2. Enter in the amount of collateral to be used and the amount of token to be shorted. Beta will directly provide metrics, such as the LTV, slippage, and price impact directly in the interface for you. Beta will also calculate the best DEX (Sushiswap or Uniswap) to swap through by default.

3. Click “Short”.