After a long time, the team is excited to announce the beginning of a brand new MetalSwap Competition, this time called “Halving Edition”.

The Bitcoin halving is coming in a few days and we want to celebrate this special event with our community with a new competition.

We also have to remind everyone that, thanks to the recent Proto-Danksharding update, all operability on the various Layer 2 platforms is incredibly cheap. This contest will be the best way to try this new fee reduction on Optimism.

For those who are not familiar with this format, the MetalSwap Competition is a period of 30 days, where all the users can compete by each other opening hedging positions in the MetalSwap dApp.

For the users that achieve the best percentage return, there are very juicy prizes as rewards.

Competition Details

The Swap Competition "Halving Edition" will take place on the Optimism blockchain starting on April 17 at 23:59 GMT and continuing until May 17 at 23:59 GMT.

To participate, simply head over to MetalSwap's dApp, the most powerful tool to hedge your decentralized assets.

Competition Rules and Rewards

The Swap Competition Journey follows the same rules as our previous competitions. We're looking for the top 20 swappers, with profits calculated based on the sum of the Profit Percentages made by each public address. 

The assets available for this competition on Optimism's Hedging Contracts are ETH, WBTC, and OP token, with USDC as the stablecoin.

Everyone who closes an Active Swap position during this period is automatically entered into the competition. You can also make any number of swaps with the same address - they will be diligently summed as explained below.

Here's what the top 20 competitors could win in USDC distributed over Optimism’s Layer-2 chain:

- 1st Place: will receive: 150.00 USDC

- 2nd Place: will receive: 100.00 USDC

- 3rd Place: will receive: 75.00 USDC

- 4th and 5th Place: 60.00 USDC

- 6th-9th Place: 50.00 USDC

- 10th Place: 30.00 USDC

- 11th-15th Place: 25.00 USDC

- 16th-20th Place: 20.00 USDC

Additionally, the Best Single Swap of the entire competition will receive an additional Reward of 100.00 USDC!

In addition to the 1000 USDC prize, participants will also receive other incentives in the form of OP tokens. 

Following MetalSwap's OP grant won in May 2023, hedging contracts on the Optimism blockchain have been incentivized with OP tokens as liquidity rewards. 

Currently, there are 2800 OP tokens in the distribution contract, with an additional 500 OP tokens scheduled to be added from the foundation treasury before the competition begins. 

This ensures that extra rewards are available to all participants who open a new position, regardless of their final percentage return.

The formula used to calculate the percentage of the Hedging Swap remains the same, let’s share it again:

R1/C1 + R2/C2 + R3/C3 + ….. = Gain%

Where:

- R1, R2,… = Swap Result. It could be positive (Profit) or negative (Loss) depending on the success or unsuccess of the operation made.

- C1, C2,… = Cover used for the Swap.

Cover it’s a data point on the smart contracts, to normalize the value in dollars, the direction of the swap must be considered:

- If the swap is Asset -> USDC, the Cover must be multiplied by the “Expiry Price” of the asset involved in the swap (i.e., the price of the asset at the time of opening of the swap)

- If the swap is USDC -> Asset, the Cover is already expressed in dollars and the value is therefore already normalized

All the Results are normalized in USDC, for example when the Profit value is recognized in Assets or when the Cover is returned to you.

Enjoy the competition

This MetalSwap Competition is a great opportunity to test the network fees following the Dencun upgrade.

If you participate, you will be able to monitor the live ranking on the dedicated page on the website.

We therefore wish good luck to all participants and invite you to stay updated, especially on X, for any news regarding the competition.

-The DeFi Foundation

✎ What is MetalSwap?

MetalSwap is a decentralized platform that allows Hedging Contract on financial markets with the aim of providing coverage to those who work with Digital Asset and an investment opportunity for those who contribute to increase the shared liquidity of the project. Allowing the protection for an increasing number of operators.

With Hedging Contract we enable hedge swap transactions through the use of Smart Contracts, AMM style.

It's great to Hedge the Risk of Price volatility with MetalSwap dApp !