How Matching Works
The Matcher’s Role
When you match a trade, you take the opposite side of the trader’s position:| Trader Opens | Matcher’s Exposure |
|---|---|
| Long (bet price up) | Short (exposure to price down) |
| Short (bet price down) | Long (exposure to price up) |
Example
A trader opens a 10x Long BTC position with 100 USDC collateral (1,000 USDC position).As the matcher, you provide 1,000 USDC and effectively have a short exposure:
- If BTC rises 5%, you lose ~50 USDC but earn interest
- If BTC falls 5%, you gain ~50 USDC plus interest
Why Match Trades?
Earn Interest
Receive continuous interest payments while your funds are matched with
active positions.
Market Neutral Strategy
With careful selection, balance your exposure across longs and shorts.
Passive Income
Once matched, interest accrues automatically without active management.
DeFi Yield
Earn yields typically higher than traditional DeFi lending protocols.
Risk vs. Reward
Potential Returns
| Scenario | Interest | P&L | Net Return |
|---|---|---|---|
| Trader wins small | +2% | -3% | -1% |
| Trader loses | +2% | +5% | +7% |
| Trade closed quickly | +0.5% | 0% | +0.5% |
| Trader wins big | +1% | -10% | -9% |
Key Risks
- Market Risk: Price moves in the trader’s favor = your loss
- Duration Risk: Longer trades = more time for adverse moves
- Leverage Risk: High leverage trades mean larger potential swings
- Smart Contract Risk: Technical vulnerabilities (mitigated by audits)
Getting Started as a Matcher
Matching Strategies
Conservative Matching
Conservative Matching
- Match only low-leverage trades (2-5x) - Prefer trades with tight stop-losses - Balance longs and shorts - Accept lower yields for lower risk
Yield Optimization
Yield Optimization
- Match higher-leverage trades for more interest - Focus on frequently-traded pairs - Monitor and exit if exposure gets too large - Requires active management
Market Making
Market Making
- Match both sides of the market - Profit from interest while staying delta-neutral - Requires sufficient capital to match diverse trades - Most sophisticated approach
Key Metrics
APR (Annual Percentage Rate)
Estimated yearly return from interest if funds remain matched:Utilization Rate
Percentage of your deposited funds currently matched:Net Exposure
Your overall directional exposure across all matched positions:Matching Interface
The Match page shows:| Section | Information |
|---|---|
| Your Balance | Deposited amount, matched amount, available to withdraw |
| Trade Queue | Pending trades waiting for liquidity |
| Your Matches | Active positions you’ve matched |
| Match History | Completed matches with P&L |
Filtering Trades
Filter the trade queue by:- Trading pair
- Position size range
- Leverage range
- Direction (long/short)
- Estimated APR
Comparison: Matching vs. Other DeFi Yields
| Strategy | Typical APY | Risk Level | Capital Efficiency |
|---|---|---|---|
| Limora Matching | 10-30% | Medium-High | High |
| Aave Lending | 2-5% | Low | Medium |
| Uniswap LP | 5-20% | Medium | Medium |
| Staking | 3-8% | Low | Low |
Best Practices
Diversify matches
Diversify matches
Don’t concentrate all funds in one trade. Spread across multiple positions
to reduce single-trade risk.
Monitor exposure
Monitor exposure
Regularly check your net long/short exposure. Imbalanced exposure means
you’re betting on market direction.
Understand the trader
Understand the trader
Higher leverage trades earn more interest but have larger potential P&L
swings.
Keep reserves
Keep reserves
Don’t match 100% of your funds. Keep some available for opportunities or
withdrawals.