What are XRP leverage tokens?
XRP leverage tokens give you amplified exposure to XRP without managing margin, collateral, or liquidation risk.
They automate borrowing and rebalancing on DeFi lending markets, letting you access leverage in just a couple clicks. No juggling loans or daily maintenance. It's a simpler way to boost XRP's upside while minimizing the usual headaches of leveraged trading.
These tokens are built on Universal Protocol’s uXRP, a fully backed, wrapped version of XRP. This enables cross-chain access without the need to bridge.
Key value proposition
Trade XRP Without Bridging
Get exposure to non-native assets like XRP directly from your preferred L2.
No Forced Liquidations
Auto‑rebalancing keeps collateral above critical levels, so your positions stay safe even in volatile markets.
Lower Costs
Built on defi, these tokens avoid perp funding rates, making leveraged trading significantly cheaper.
FAQs
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 products protect you from liquidation with automated risk management that rebalances assets to maintain a target leverage ratio that avoids liquidation.
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.