What is ETH2X-FLI?
ETH2X-FLI (ETH 2x Flexible Leverage Index) is an ERC-20 token operating on the Ethereum platform, with the primary goal of providing users with 2x leveraged exposure to Ethereum (ETH).The token is built on Set Protocol and issued by Index Coop, with its methodology provided by Scalara (formerly Pulse Inc. – DeFi Pulse).
Unlike traditional leveraged trading, ETH2X-FLI aims to simplify leveraged operations by abstracting collateral debt management. It monitors leveraged loans 24/7 and automatically manages liquidation ratios, helping users reduce the complexity of manually managing collateralized debt positions while lowering potential liquidation risks and associated gas fees.
How It Works and Key Features
ETH2X-FLI is designed to provide a more convenient and capital-efficient approach to leveraged investing. Its key features include:
- Automated Leverage Management: The token’s built-in mechanism automatically rebalances positions to maintain the target leverage ratio and adjusts positions during market volatility, thereby providing a degree of protection against liquidation.
- Reduced Gas Fees: Compared to users manually and frequently adjusting leverage positions on DEXs, ETH2X-FLI’s automated mechanism aggregates these operations, potentially reducing users’ gas fee expenses.
- Multi-chain Support: In addition to ETH2X-FLI on the Ethereum mainnet, there is also an ETH2X-FLI-P version running on the Polygon network, which provides the same 2x ETH exposure.
- Fee Structure: ETH2X-FLI charges a 3.65% annualized streaming fee, as well as a 0.10% fee for minting and redeeming.
It is important to note that, as a leveraged product, ETH2X-FLI is not recommended as a long-term holding. Leveraged tokens are subject to “volatility decay,” meaning that during periods of sustained market volatility or sideways movement, their performance may lag behind that of non-leveraged investments in the underlying asset.
Market Performance Overview
As of this writing, ETH2X-FLI’s market data shows some volatility across different platforms. According to multiple data platforms:
- Current Price: Fluctuating between approximately $2.04 and $3.25.
- 24-hour trading volume: Varies significantly, ranging from hundreds of dollars to tens of thousands of dollars, indicating that liquidity may differ by platform and time.
- Market Capitalization: Ranges from approximately $1.16 million to $1.85 million.
- Circulating Supply: Approximately between 568,000 and 570,000 ETH2X-FLI.
The token’s all-time high reached either $751.65 or $590.83, but the current price is well below these historical peaks, reflecting the high volatility of the cryptocurrency market and the nature of leveraged tokens.
Trading and Acquiring ETH2X-FLI
ETH2X-FLI is primarily traded and acquired through decentralized exchanges (DEXs). Here are some common methods:
- Decentralized Exchanges (DEXs): The ETH2X-FLI/ETH trading pair is primarily traded on mainnet DEXs for the Ethereum, such as Uniswap (v3).For ETH2x-FLI-P on the Polygon chain, users can trade on platforms such as SushiSwap (Polygon POS).
- DEX Aggregators: Users can use DEX aggregators such as CoW Swap and 1inch to find the best trading routes and prices.
- Index Coop App: As the issuer, Index Coop’s official app supports the direct purchase of ETH2X-FLI via “Flash Mint” or “DEX Swap” (powered by 0x).
- Web3 Wallets with Built-in Swap Functionality: Some Web3 wallets, such as Bitget Wallet and Coinbase Wallet, support storing ETH2X-FLI and may include built-in swap functionality, allowing users to connect to a DEX directly from within the wallet to make swaps.
- Centralized Exchanges: Certain centralized exchanges (such as Kraken, Coinbase, Bybit, and Crypto.com) may list price information for ETH2X-FLI, but their trading functionality may be limited or inactive.For example, Kraken may list the price but indicate that the asset is currently unavailable for trading; Coinbase provides information but does not allow direct trading—though the asset can be held in its wallet; and Crypto.com may display a trading volume of “N/A.” Before attempting any transactions, users must verify for themselves whether the platform currently supports trading of this asset.
Before making any trades, be sure to fully understand the risks associated with leveraged tokens and choose a reputable platform with sufficient liquidity.
