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Inverse MATIC Flexible Leverage Index

Inverse MATIC Flexible Leverage Index

Polygon Inverse MATIC Flexible Leverage Index (iMATIC-FLI) enables you to leverage a collateralized debt position for exposure to the price of MATIC on Polygon

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All edits by  Anna Invest 

Edits on 12 Feb, 2022
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Anna Invest
edited on 12 Feb, 2022
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Inverse MATIC Flexible Leverage Index

Polygon Inverse MATIC Flexible Leverage Index (iMATIC-FLI) enables you to leverage a collateralized debt position for exposure to the price of MATIC on Polygon

Article

TheTheTheThe Inverse MATIC Flexible Leverage Index on Polygon enables traders to automate leveraged exposure in a completely decentralized manner. iMATIC-FLI-P targets a short -1x exposure to MATIC and employs a flexible leverage mechanism for optimal rebalancing outcomes.

mpletely dThe FLI suite is built in collaboration with DeFi Pulse to minimize the risks and costs associated with maintaining collateralized debt positions. iMATIC-FLI-P is now available with an initial supply cap of 250k tokens. There are three major benefits of using iMATIC-FLI-P: decreased risk, lower gas fees, and ease of use.

Decreased Risk: Leveraged products are inherently risky. iMATIC-FLI-P decreases that risk for you by programming the leverage ratio to recenter automatically at predefined intervals. This allows the product to absorb major volatility spikes, and rebalance in a flexible manner to ensure collateral levels stay above liquidation thresholds. FLI tokens also utilize an emergency de-levering mechanism — referred to as ‘ripcord’ — as another safety layer in case of black swan events.

Lower Fee Burden: FLI also minimizes gas costs associated with rebalancing by utilizing a unique algorithm that increases rebalancing efficiency by an order of magnitude. Additionally, the token’s 1.95% (annualized) streaming fee is considerably less expensive than alternatives on centralized exchanges that can charge upwards of 10.95% annually, and there is also no slippage due to composable entry and exit. Also, because iMATIC-FLI-P is a Polygon-native token, it can be easily minted with negligible fees through the TokenSets website.

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Ease of Use: Best of all, the Flexible Leverage tokens are exceedingly easy to use. Simply buy and sell like you would any other token on Slingshot or Uniswap Polygon for collateralized debt management abstracted into a single token! iMATIC-FLI-P rebalances your leverage position for you, so liquidation risk is lower and constant monitoring is not required.

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February 9, 2022

Index CoopCoop | Year of the on Twitter

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