An overview of leveraged tokens

Quick Take

  • Leveraged ETFs from traditional finance have inspired leveraged tokens.
  • Alameda Research is a pioneer in the leveraged token market, but their tokens have limited popularity due to complexity.
  • Binance offers a black-box version of tokens, where the exchange’s proprietary algorithms control all parameters.
The vast majority of financial instruments in the crypto are adopted from traditional finance, and leveraged tokens are no exception. Let’s take a quick look at the transformation of investors’ desire to reduce risks into what we mean by these tokens. It is no secret that risk diversification benefits investors in the long term. Only […]

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