Bet on Divergence between BTC and SOL

  • Amelia thinks that BTC price will move sideways in the short term, while SOL price will increase relative to BTC.

  • She deposits USDC into the Jet V2 application, which immediately begins earning interest.

  • Using her USDC as collateral, she sets up a leverage swap from BTC to SOL, which will borrow BTC and swap it for SOL in the same transaction. She is now long on the SOL price with respect to BTC price. If BTC price is stable but SOL price increases, she will make money.

  • She clicks the “max leverage” button and executes the swap.

  • Amelia holds the position for a week…and she was correct! The price of BTC increased very slightly from where it was but has overall fluctuated within a few basis points of her entry into the position. On the other hand, SOL price has indeed increased a higher percentage than BTC since the position was opened.

  • She is satisfied with the results after a week, and thinks that the divergence might decrease moving forward. So, she wants to take profit.

  • She goes back to the swap screen and reverses the order of the swap so that it will swap from SOL To BTC.

  • She clicks the “account balance” button in order to trade all of the SOL in her account for BTC.

  • She also clicks the toggle button labeled “repay BTC loan” on the order panel so that her BTC debt will be repaid in the same transaction as the swap.

  • She will be left with the original USDC in her account that she used for collateral, AND some SOL in her account that equals her profits.

  • She wants to lock in her profits in a stablecoin and not hold the SOL for a longer term, so she does a NON-LEVERAGE swap on that same swaps screen. To do this, she simply sets up a swap from SOL to USDC, clicks the “account balance” button to swap all of the SOL in her account.

  • Amelia successfully bet on bullish divergence in the price of SOL with respect to BTC, earning a profit!

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