Using Piles & pileTokens
Last updated
Last updated
Positions on the Takepile Protocol are opened with pileTokens, so you'll need to pick some up before you can start trading. The first set of piles at launch will utilize USDB, but these instructions will work with any asset available for deposit on Takepile (USDB, USDC etc.). Say you'd like to trade with up to 25x leverage. First, you'll need leveraged pileTokens. We'll run through an example with depositing wrapped FTM (wFTM).
To get pileFTM-25, you'll deposit wFTM into the wFTM-25x Pile. You'll receive pileFTM-25 in return. A pileToken is minted upon deposit, which means the size of a pile grows as more traders add or interact with a pile.
Your newly minted pileFTM-25 can then be used to open up a position, which we'll explain further on the next page. First, we'll go into more detail about pileTokens. Along with being minted on the deposit of the pile's underlying asset, pileTokens are also minted upon a successful trade.
The opposite would also be true in a losing trade. If a position closes with a 20% loss, 20% of the total position's collateral would be burned and reflected in the pile.
While the conversion rate of assets may differ from time to time, what is true on Takepile is that if you own 10% of a pileToken's supply, you would be able to redeem 10% of a pile's underlying asset. If you were to deposit 100 USDB into the USDB pile while it has a supply of 1000 pileUSDB, bringing the total up to 1100 pileUSDB in circulation, but other traders have losing positions that bring the total number of pileUSDB in circulation down to 900, your pileUSDB would then be worth more USDB than it was originally.
To learn more technical information regarding piles, head here: