The most important aspect of smartBCH is that it allows you to sell or buy your BCH versus a stablecoin (flexUSD or sBUSD) in a Dex environment. It's not possible to cheat with this. Naked BCH shorts are not possible on smartBCH. If we want the BCH shorting to stop, move it to SmartBCH.

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Binance, Coinbase, Coinex, almost all exchanges run fractional. That mean shorters might borrow BCH to dump that the exchanges don't have. But as shorters can drive the price down, people then move more BCH to these exchanges and panic sell and eventually the exchange end ups with all the BCH they own their customers.

This is a vicious dynamic but we can break through it. Telling people to stop trading BCH is unrealistic. But telling them to start trading it versus stablecoins on dexes is very realisitc.

On smartBCH there are already 4 dexes that allow you to trade BCH versus a stablecoin. (currently flexUSD and sBUSD). This means people that thing the price will go down can sell and people that thing the price will go up can buy more.

You can also hedge your BCH by selling half of it and then proving liquidity. After you are 50/50 in BCH and flexUSD. If the price goes up, you will still gain some but less then if you just held.

But if the BCH prices goes down, you will also lose a lot less because within the pool you are going to end up with less flexUSD but more BCH.

This means that for your capital the market becomes less volalite.

And of course while you do this you get a reward for providing the LP. And the 50% you have in flexUSD gets interest while your flexUSD is in the pool.

This is such a win win win situation that if you have any BCH on exchanges you should withdraw it and move it on to smartBCH.

If we could start a exodus with BCH from centralised exchanges moving away until it's at smartBCH then the naked shorting will eventually stop.

This can have have an incredible positive influence on the price.

submitted by /u/i_have_chosen_a_name
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source https://www.reddit.com/r/btc/comments/qdml68/the_most_important_aspect_of_smartbch_is_that_it/

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