Inverse ETH Flexible Leverage Index (iETH-FLI-P)

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The Inverse ETH Flexible Leverage Index on Polygon (iETH-FLI-P) lets you leverage a collateralized debt position in a safe and efficient way, by abstracting its management into a simple index. It enables market participants to take on leverage while minimizing the transaction costs and risks associated with maintaining collateralized debt. iETH-FLI-P targets a short -1x exposure to ETH and employs a flexible leverage mechanism for optimal rebalancing outcomes.

Stats

Market Cap

Volume

Current Supply

Streaming Fee

1.95%

minting / Redeeming Fee

0.1%

Underlying Tokens

amUSDC

WETH

Debt & Collateral is accessed via

About

Objective

The Inverse ETH Flexible Leverage Index (iETH-FLI-P) makes leverage effortless. The end user does not have to worry about:

Monitoring their leveraged loan 24/7, having to always be ready to act.

High fees, transactions not being included fast enough or the relative UIs being unresponsive during times of high volatility.

Users don't have to manage their liquidation ratio since this is automatically managed by FLI, which drastically reduces liquidations, even during black swan events.

iETH-FLI-P has several key advantages over Legacy Leveraged Tokens:

Zero slippage via composable entry and exit.

Unique index algorithm reduce rebalancing needs by an order of magnitude.

Emergency deleveraging possible during Black Swan events for additional fund safety.

Initial Parameters

Underlying Asset: USDC

Borrow Asset: WETH

Target Leverage Ratio: -1.0 (short)

DeFi Lending Protocol: Aave Polygon

Maximum Leverage Ratio: -1.2 (short)

Minimum Leverage Ratio: -0.8 (short)

Rebalance Interval: 4 hours

Recentering Speed: 2.5%

Definitions

Borrow Rate — the cost to borrow the asset at the DeFi Lending Protocol over the most recent epoch.

Epoch Length — the time between rebalances.

Target Leverage Ratio (TLR) — the long term target for the value of the assets held by the index divided by the value of the debt held by the index.

Current Leverage Ratio (CLR) — the value of the asset currently held by the index divided by the current value of the debt held by the index.

Maximum Leverage Ratio (MAXLR) — the highest leverage ratio the index will ever have after a rebalance.

Re-centering Speed (RS) — the rate at which the Current Leverage Ratio is adjusted each period to return to the Target Leverage Ratio, when the index is not being adjusted back to the Maximum Leverage Ratio or the Minimum Leverage Ratio.

Index Price:

FLIt = FLIt-1 * (1 + ((Pricet/Pricet-1–1) * CLRt-1 — (BorrowRatet * (CLRt-1 -1)/CLRt-1)))

Calculation of the new Current Lever Ratio for the period:

FLIt = FLIt-1 * (1 + ((Pricet/Pricet-1–1) * CLRt-1 — (BorrowRatet * (CLRt-1 -1)/CLRt-1)))

Disclaimer:

You shall not purchase or otherwise acquire the Ethereum Flexible Leverage Index (ETH2X-FLI-P) if you are a citizen, resident (tax or otherwise), and/or green card holder of the United States of America, or if you are a person in any jurisdiction in which such offer, sale, and/or purchase of ETH2X-FLI-P is unlawful, prohibited, or unauthorized (together with U.S. citizens, residents, and/or green card holders, 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 ETH2X-FLI-P is unlawful, prohibited, or unauthorized). You shall not resell or otherwise transfer the ETH2X-FLI-P to any Restricted Person, including but not limited to, citizens, residents, or green card holders of the United States of America or any natural person or entity within the United States of America. The transfer or resale of the ETH2X-FLI-P to any Restricted Person is not permitted.

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Information is for educational and illustrative purposes only. The Index Cooperative is not engaged in the business of the offer, sale or trading of securities and does not provide legal, tax, or investment advice. Cryptocurrencies and other digital assets are speculative and involve a substantial degree of risk, including the risk of complete loss. There can be no assurance that any cryptocurrency, token, coin, or other crypto asset will be viable, liquid, or solvent.No Index Cooperative communication is intended to imply that any digital assets are low-risk or risk-free. The Index Cooperative works hard to provide accurate information on this website, but cannot guarantee all content is correct, complete, or updated.