# Overview

### What is Versus?

Versus is a P2P hedging layer built for DeFi. Traditional hedging tools — options, perpetuals, insurance protocols — are often complex, capital-inefficient, or limited to a narrow set of risks. Versus takes a different approach: a peer-to-peer marketplace where DeFi participants hedge directly against one another, with transparent resolution and open access by design.

Whether you're an LP worried about impermanent loss, a token holder concerned about a price crash, or a protocol user seeking protection against smart contract exploits — Versus provides structured, accessible hedging instruments purpose-built for the risks that matter in DeFi.

#### Why Versus?

| Traditional Hedging                                    | Versus                                      |
| ------------------------------------------------------ | ------------------------------------------- |
| Complex derivatives requiring deep financial expertise | Simple Yes/No markets anyone can understand |
| Centralized counterparty risk                          | On-chain, non-custodial settlement          |
| High minimum position sizes                            | Accessible from any amount                  |
| Opaque pricing                                         | Transparent, market-driven pricing          |
| Limited DeFi-specific coverage                         | Built for DeFi risk scenarios               |

#### Key Features

* DeFi-Focused Markets — Markets tailored to real risks in DeFi: price drops, depegs, exploits, and more
* Hedging Made Simple — No options Greeks, no funding rates. Just buy a position that pays out if the risk event occurs
* Non-Custodial — Your funds stay in your wallet. All trades settle through smart contracts
* Transparent Resolution — Clear, pre-defined resolution rules with oracle verification
* Peer-to-Peer Trading — Trade directly with other participants via an on-chain order book

### How It Works

1. Browse Markets — Find a market that covers the risk you want to hedge against
2. Buy a Position — Purchase "Yes" shares if you believe the risk event will occur
3. Hedge is Active — Your position acts as insurance. If the event occurs, your shares are redeemable for $1 each
4. Resolution — When the market resolves, shares of the resolved outcome pay out $1 and all other shares expire worthless.

> Example: You hold 10 ETH and provide liquidity in a DeFi pool with a ±20% price range. You buy $500 worth of "Yes" shares at $0.15 in the "Will ETH stay within the ±20% range for 90%+ of this month?" market.\
> If ETH stays within range, your position keeps earning LP fees — and your shares pay out \~$3,333, stacking on top of your APR. If ETH breaks out of range, you lose your $500 "premium," but the payout offsets the lost LP yield and portfolio losses.

### Supported Chains & Assets

| Item              | Details                                |
| ----------------- | -------------------------------------- |
| Blockchain        | BNB Smart Chain                        |
| Trading Unit      | USDT                                   |
| Deposit Tokens    | USDT, U                                |
| Deposit Chain     | BNB Smart Chain                        |
| Withdrawal Tokens | USDT                                   |
| Withdrawal Chain  | BNB Smart Chain                        |
| Token Standard    | ERC-1155 (Conditional Tokens)          |
| Order Book        | Hybrid CLOB (Central Limit Order Book) |

***

### Getting Started

Ready to start hedging? Jump to the [Quickstart Guide](/getting-started/quickstart-guide.md) to set up your wallet and place your first trade.


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