He explained how Stream’s trading will work: “You have basically two legs, the one you get paid on (generally short) and the one you are hedging on (generally long). To get paid you need to be on a perp DEX, we take out say 2x-3x leverage. We then do the exact same thing on AAVE, and borrow to be long the same amount. Because our cost to hedge is less than what we are getting paid by the perpetuals exchange, we are making passive returns without being directionally exposed.”
