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.
Disclaimer: This content is for informational purposes only and is not legal, tax, investment, financial, or other advice. You should not take, or refrain from taking, any action based on any information contained herein, or any other information that we make available at any time, including blog posts, data, articles, links to third-party content, discord content, news feeds, tutorials, tweets, and videos. Before you make any financial, legal, technical, or other decisions, you should seek independent professional advice from a licensed and qualified individual in the area for which such advice would be appropriate. This information is not intended to be comprehensive or address all aspects of Index or its products. There is additional documentation on Index’s website about the functioning of Index Coop, and its ecosystem and community.
You shall not purchase or otherwise acquire our restricted token products if you are: a citizen, resident (tax or otherwise), and/or green card holder, incorporated in, owned or controlled by a person or entity in, located in, or have a registered office or principal place of business in the U.S. (defined as a U.S. person), or if you are a person in any jurisdiction in which such offer, sale, and/or purchase of any of our token products is unlawful, prohibited, or unauthorized (together with U.S. persons, a “Restricted Person”). The term “Restricted Person” includes, but is not limited to, any natural person residing in, or any firm, company, partnership, trust, corporation, entity, government, state or agency of a state, or any other incorporated or unincorporated body or association, association or partnership (whether or not having separate legal personality) that is established and/or lawfully existing under the laws of, a jurisdiction in which such offer, sale, and/or purchase of any of our token products is unlawful, prohibited, or unauthorized).
