Leveraged tokens are Ethereum-based ERC-20 tokens designed to give holders easy access to leveraged long and short daily returns of cryptoassets like Bitcoin and Ether. To put it simply, a leveraged token maintains notional exposure to the -2x or -3x of a crypto asset like Bitcoin or Ethereum. This made possible through the use of Amun’s Jasper platform which facilitates margin positions in the cryptoassets in question both for long and short positions through the use of perpetual swaps, whilst also rebalancing on a daily basis in order to maintain daily notional leveraged exposure.
To give an example, our BTC3XLONG tokens maintain notional exposure to 3x of the daily returns of Bitcoin and our ETH3XSHORT tokens maintain notional exposure to -3x of the daily returns of Ether. This means that if Bitcoin were to rise by 3% on a single day then BTC3XLONG would aim to rise by 9% on the same day. The use of these tokens greatly improves the user experience of maintaining leverage to cryptoassets.