Create an account on one of the supported exchanges.
Decide how long you want to hedge Bitcoin. In this period your balance remains essentially stable to the USD Dollar but every day you pay a small fee to keep your shorts open on the exchange.
Input the amount of Bitcoin you want to hedge. The script calculates the correct amount of margin and leverage to hedge.
You need to fund the script via a Lightning Network payment in the amount of 2% of your Bitcoin balance. This money does directly go to the exchange and not through us.
The script opens a short position on the exchange with the predetermined margin and leverage.
Finally, the script creates a cronjob automatically which ensures that the script runs every 10-15 minutes to open a new short if you get liquidated. This ensures you are hedged for the entirety of your duration.
Use cases
Protect the value of your open channels (non-liquid capital) as a Lightning Network node operator
Protect your savings in uncertain market conditions
Avoid the temporary corrections after a run up as a trader in a bull market
Bet on falling Bitcoin prices by overstating your Bitcoin balance (up to 50x leverage)
Hedge your position and get some incoming liquidity because a small portion (~2-4%) of your balance is on an exchange.