What is FLI?
The Flexible Leverage Index (FLI) lets you leverage a collateralized debt position in a safe and efficient way, by abstracting its management into a simple index, reproducible by a fully-collateralized ERC20 token built on Set Protocol.
February 8, 2022
Cryptocurrency Leverage Made Simple
Video Excerpt
"So our FLI Series or Flexible Leverage Index Series is a way to put on a leveraged ETH or BTC position on Compound. Now, if you're going to do this on your own, you need to first stake Ethereum or BTC to the Compound platform, you then need to borrow USDC, then you need to go and make a transaction to buy more ETH or BTC to create leverage.
If you buy FLI all of that is done behind the scenes. You simply make a single token purchase and don't have to worry about the rest. The other benefit of the product is that there’s flexible leverage, so it doesn't hit exactly 2x and that flexibility is to the benefit of the user. There's also some safeguards built in to protect the token holders against liquidations. So for example, in May 2021 the markets had some pretty nasty down days where billions of dollars of liquidations took place on Compound, Aave et cetera. None of our holders experienced a penny of loss showing that the product worked quite well to prevent against liquidation. So Ethereum, BTC, those are the products that we have today, but we envision launching additional leverage products to get exposure to other crypto assets."
Hear more about FLI in the full video.
Disclaimer: This content is for informational purposes only and should not be construed as legal, tax, investment, financial, or other advice.
