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How to unwrap your FLI tokens
How to unwrap your FLI tokens
We've migrated the FLI tokens to new BTC2x and ETH2x tokens. Here's how to exit your position.
3/12/2024
Index Coop
Content
This week the Index Coop launched new ETH2x and BTC2x leveraged tokens on Ethereum mainnet! ETH2x and BTC2x are meant to replace the legacy FLI tokens and utilize our more modern Index Protocol and Aave v3 infrastructure.
If you are a current holder of the ETH 2x Flexible Leverage Index (ETH2x-FLI) or the BTC 2x Flexible Leverage Index (BTC2x-FLI), your tokens have already been rebalanced into the new ETH2x and BTC2x tokens. As a result, the legacy FLI tokens function as a “wrapper” around the new 2x tokens. If you wish to maintain your leverage exposure to ETH or BTC, no action is required! The new 2x tokens will continue to operate under the hood of the FLI tokens and fees have been disabled.
However, if you want to “unwrap” your new 2x tokens or redeem your FLI tokens entirely, this guide will walk you through the necessary steps via the Index Coop App.
Step 1: Unwrap your FLI Token
To unwrap your FLI tokens and receive the new 2x tokens in return, use these links with the pre-populated route for ETH2x-FLI or BTC2x-FLI.
After connecting your wallet and inputting the amount of FLI tokens you would like to unwrap, you may be prompted with a token approval.
Once you’ve approved the contract, you can submit the transaction to “unwrap” (or redeem) your FLI tokens in exchange for the underlying 2x token.
From there, you can do whatever you’d like with your new 2x tokens! Provide liquidity on Uniswap, trade actively with the Index Coop App, or close your position outright (i.e. Step 2).
Step 2: Redeem your 2x Token
If you want to close your leverage position altogether, you can redeem your 2x tokens using these pre-populated trade routes in our app: ETH2x-FLI, BTC2x-FLI.
After connecting your wallet and inputting the amount of 2x tokens you would like to liquidate, you may be prompted with a token approval.
Once you’ve approved the contract, you can submit the transaction to flash redeem your 2x tokens in exchange for the asset of your choosing (ETH, WETH, WBTC, USDC).
Step 0: Sell your FLI Token
FLI holders also have the option to swap their tokens against DEX liquidity. However, FLI liquidity is unpredictable and likely to dissipate over time; consequently, users should consider unwrapping (Step 1) and redeeming (Step 2) instead of swapping whenever possible.
To swap your FLI tokens using DEX liquidity, use these links for ETH2x-FLI or BTC2x-FLI within the Index Coop App.
After connecting your wallet and inputting the amount of FLI tokens you would like to swap, you may be prompted with a token approval.
Once you’ve approved, you can submit the transaction to swap your FLI tokens in exchange for the asset of your choosing (ETH, WETH, WBTC, USDC). Swaps are executed via 0x and MEV protection is recommended.
FLI holders may also consider swapping via DEX Aggregators like CoWSwap or 1inch.
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FAQs
Index Coop yield tokens simplify earning yield in DeFi by automating complex strategies and diversifying across protocols. They are user-friendly and cost-efficient, appealing to both new and seasoned DeFi users.
Leverage tokens automate a leveraged position by utilizing onchain money markets like Aave or Morpho to borrow funds, amplifying a user's exposure to an asset without requiring manual management. The token's smart contracts autonomously handle the borrowing, lending, and rebalancing of assets, maintaining a consistent leverage ratio despite market fluctuations. This automation eliminates the complexities of collateral management and liquidation risks, while also charging low, transparent fees that avoid expensive funding rates often charged by perps.
Index Coop is a decentralized autonomous organization (DAO) that specializes in creating and maintaining onchain structured products. Index Coop aims to democratize access to the crypto market, empowering everyone to participate in the growing digital asset ecosystem with ease.
No, yield automatically compounds and accrues to the token price. The value of the tokens you hold in your wallet will simply go up over time without the need to claim or compound rewards.
Index Coop products protect you from liquidation with automated risk management that rebalances assets to maintain a target leverage ratio that avoids liquidation.
INDEX is the ERC-20 governance token on Ethereum for Index Coop. INDEX empowers its holders to participate in decision-making processes that shape the future of Index Coop.
Yes, all Index Coop products are instantly redeemable for their underlying value at all times.
Yes, all Index Coop smart contracts have been audited by leading independent security firms such as OpenZeppelin, ABDK, Isosiro, & more. There is also an active bug bounty program through ImmuneFi. Audit information is published in the docs here.
Streaming fees (an annual fee paid continuously block-by-block), mint and redeem fees (only on leverage tokens), and borrow costs (interest paid to borrow funds from onchain markets when using leverage).