ETH 2x Flexible Leverage Index (ETH2X-FLI) aims to make leverage effortless for users. The platform enables users to take advantage of collateralized debt positions efficiently and safely by abstracting the management into the easy index. The platform allows participants to take advantage of fewer transaction fees and risks linked to the maintenance of collateralized debt.
The platform plans to make leverage effortless for end users by monitoring their leveraged loan 24/7. The platform further helps to ensure that users do not have to manage their liquidation ratio because the FLI automatically manages everything. Thus, the liquidations are reduced even during the black swan events. The platform also takes responsibility for the high fees transactions that are not included in the relative UIs and are not responsive during high volatility.
ETH2x-FLI is the native, fully collateralized ERC-20 leverage token built on the platform for Ethereum. The token utilizes the FLI methodology, which means the user does not have to worry about requirements on margin and can save money on gas. The FLI methodology uses a 2x leverage and a tolerance range that reduces the amount of rebalances and increases the gas efficiency, ensuring direct savings for the users.
Further, the token is built on the ERC-20 protocol, enabling users to gain leverage exposure to Ether, using collateralized debt without monitoring liquidation risks. The ETH2X-FLI token seeks to offer some benefits over the legacy leveraged tokens, including:
The token offers zero slippage through composable entry and exit.
The unique index algorithm lowers the need for rebalancing through an order of magnitude.
The token assists with emergency deleveraging to ensure fund safety during the black swan events.