Buy Index Coop - ETH 2x Flexible Leverage Index (ETH2X-FLI)

What is Index Coop - ETH 2x Flexible Leverage Index?

Index Coop - ETH 2x Flexible Leverage Index (ETH2X-FLI) is a financial product that provides 2x leveraged exposure to Ethereum (ETH). It is designed to simplify the process of leverage trading by automatically maintaining a target leverage ratio of 2.0x. This index operates on the Ethereum blockchain, utilising smart contracts to manage an over-collateralised debt position, rebalance the portfolio, and protect against liquidation.

How does Index Coop - ETH 2x Flexible Leverage Index work?

ETH2X-FLI operates by using smart contracts to manage the rebalancing of a collateralised debt position on the Ethereum blockchain. The index targets a 2x leverage ratio by adjusting its internal composition daily. This is achieved through specific algorithms that calculate leverage and adjust it based on market conditions. The smart contracts enable automated rebalancing and provide liquidation protection to maintain the intended leverage without manual intervention by the user.

What are the potential use cases for Index Coop - ETH 2x Flexible Leverage Index?

1. Leveraged Trading: Traders can use ETH2X-FLI to achieve 2x leveraged exposure to ETH, potentially amplifying their returns in a decentralised finance (DeFi) environment.
2. Risk Management: The product can be utilised for hedging strategies or managing risk by taking controlled leveraged positions.
3. Yield Farming and Investment: ETH2X-FLI can be incorporated into yield farming strategies or investment funds to enhance returns by leveraging ETH exposure.
4. Integration with DeFi Protocols: As an ERC-20 token, it can be seamlessly integrated into various DeFi platforms and protocols, extending its utility across the ecosystem.

What is the history of Index Coop - ETH 2x Flexible Leverage Index?

Index Coop - ETH2X-FLI was launched in March 2021 by Index Coop, a decentralised community focused on creating innovative financial indices on the blockchain. It is part of the Flexible Leverage Index series developed in collaboration with DeFi Pulse. Since its launch, ETH2X-FLI has seen various price movements, reaching its highest recorded price in December 2021 and experiencing significant market changes since then. The product has continued to evolve with technological advancements such as the utilisation of smart contracts for automated management, contributing to its presence in the DeFi space.