Leveraged Tokens

Constant leveraged exposure without margin management

What are leveraged tokens?

Leveraged tokens are ERC-20 tokens that offer leveraged exposure to an underlying asset while maintaining the leverage factor within a targeted range. The tokens are built using the Synthetix Perps V2 engine.

Key characteristics

Constant leverage

What distinguishes leveraged tokens from conventional perpetual futures is the reactive rebalancing of the margin-to-notional ratio, otherwise known as the leverage factor. As opposed to a fixed amount of borrowed funds from the outset, the dynamic management of the leverage factor maintains constant leveraged exposure throughout their lifecycle. As a result, leveraged tokens do not require any margin management by the holder.

Composability

Leveraged tokens implement the ERC-20 token standard. This means these tokens will appear in your wallet, can be transferred at your discretion, and seamlessly integrate into the broader DeFi ecosystem.

Deep liquidity

All leveraged tokens are tokenized representations of perpetual futures contracts accessed through Synthetix's Perps V2 engine. By drawing from the deep liquidity and benefiting from the cost-effective fees provided by Synthetix, these tokens offer a powerful and efficient way to access leveraged positions.