ATLAS Shorting Strategy Breakdown

• Borrow ATLAS on Solend
• Swap ATLAS to another token
• Wait for token price to go lower
• Repay Borrowed Amount

Resources

Solend Docs -

Sample tx -

Findings and Insights

• Daily active borrowers are low - makes sense since shorting is more of an advanced technique (liquidation risk etc)
• Borrow volume is low - hence short pressure can’t be too high - need to write more queries to prove this
• Most of the spikes in borrow volume is generated by few whales.
• Need to compare borrows with swaps to observe shorting behavior
• Need to do the same for POLIS