Introduction
Following the last article about full exposure BTC farming, this article dives into reduced exposure BTC farming. Reduced exposure BTC farms are ideal for people that have a large spot BTC stash, are maybe even over-allocated for their own taste, and don’t want to straight up sell them while shielding against volatility. This could for example be due to tax implications or to keep farming points. You will, however, miss out on some of the BTC gains in case of good price performance - the price you always pay for downside protection.
Generally, reduced exposure farming involves holding a BTC position in some form and shorting...