Other Protocols & Features
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This is a special way to hold tokens when you're uncertain if a token will drop soon, but also don't want to miss out on any moons.
It reduces the volatility of your token holding. For example, In this case if the price of ETH drops by 50%, your position would only lose <30% of its value.
The downside is that you miss out a little bit on the profits if it goes moderately up. For example if ETH gains 50%, you'd only gain 38.7%. But, if ETH keeps going, the position converges back to ETH to capture the full upside.
So it's like a risk sandwich. If the price drops you benefit, if the price goes up a little you profit but don't make as much, if the price moons you get all the upside. You choose the boundaries of the sandwich.
Overall, this is a volatility reduced way of holding a taken giving your portfolio's value more stability. It earns also fees if the price drops, pays fees if the price goes up moderately, and earns fees again if the price moons.
