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Hedge against DeFi risks (Coverage)
This strategy provides risk protection similar to insurance but without the issues associated with DeFi insurance.
A user holding yvWETH or other yield-bearing tokens can hedge their position by borrowing ETH against yvWETH on Ajna's lending pool. The user can then either enter another yield strategy with the borrowed ETH or simply keep it.
If Yearn is exploited and yvWETH loses its value, the user keeps the borrowed ETH, virtually as an advance claim payout.