Objectives of the Ethereum Leverage Index
The Ethereum Flexible Leverage Index (FLI) is built using a smart contract that uses data from Oracle to monitor the price of ETH and calculate the leverage ratio. The ETH2x-FLI index uses a flexible leverage strategy, meaning it automatically adjusts its leverage based on market volatility. When the market is stable, the index maintains a lower level of leverage, but as volatility increases, it will automatically increase its leverage. This strategy allows users to benefit from both upward and downward price movements of Ethereum.
This Ethereum Flexible Leverage Index (FLI) works by automatically adjusting its leverage based on ETH’s volatility.
- When ETH experiences high volatility, the FLI reduces its leverage to avoid liquidation.
- When ETH experiences low volatility, the FLI increases its leverage to maximize returns.
What is the Ethereum Flexible Leverage Index?
Ethereum Flexible Leverage Index makes leverage effortless and enables market participants to take on leverage while minimizing the transaction costs and associated risks while maintaining the collateralized debt.
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