An Overview of BTCBULL3X
BTCBULL3X amplifies Bitcoin price change by three times. If Bitcoin climbs 5% in price, BTCBULL3X goes up 15% in price. The token does not liquidate, and maintains constant leverage to achieve higher growth potential than a regular 3x long.
In sideways (up-down) markets, Toros pools can underperform typical leverage products. This is known as Volatility Decay. Toros pools work similarly to Leveraged ETFs. They maintain a leverage range by rebalancing AAVE debt. Volatility decay occurs through rebalancing, rebalance fee, and debt interest. Toros pools are therefore intended for short term directional bets for best results.
![strategy illustration](/_next/image?url=%2Fimages%2Fstrategy%2Flong-1.webp&w=1200&q=75)
Vault receives deposits
![strategy illustration](/_next/image?url=%2Fimages%2Fstrategy%2Flong-2.webp&w=1200&q=75)
Deposits are added to AAVE as collateral
![strategy illustration](/_next/image?url=%2Fimages%2Fstrategy%2Flong-3.webp&w=1200&q=75)
Stablecoins are borrowed from AAVE
![strategy illustration](/_next/image?url=%2Fimages%2Fstrategy%2Flong-4.webp&w=1200&q=75)
Stablecoins are swapped to the deposit asset. The process is repeated until the target leverage is achieved
Toros leverage tokens are best used for short term directional upside. Single direction movements can exceed returns compared to typical perp leverage products. This is because Toros increases leverage as its price increases, to maintain the leverage range. Toros uses AAVE to manage debt leverage positions.
All Toros leverage tokens have built-in protection against downside liquidation. For example, if you had held a typical -2X ETH Short perp from March to May 2021, you would have been liquidated several times over as ETH went up in price. Holding the Toros Ethereum Bear -2X however, would have protected you from liquidation. This is because Toros rebalances on price movements to maintain the leverage range. When a Toros token decreases in value, its leverage also decreases.
In sideways (up-down) markets, Toros pools can underperform typical leverage products. This is known as Volatility Decay. Toros pools work similarly to Leveraged ETFs. They maintain a leverage range by rebalancing AAVE debt. Volatility decay occurs through rebalancing, rebalance fee, and debt interest. Toros pools are therefore intended for short term directional bets for best results.
![strategy illustration](/_next/image?url=%2Fimages%2Fstrategy%2Flong-1.webp&w=1200&q=75)
Vault receives deposits
![strategy illustration](/_next/image?url=%2Fimages%2Fstrategy%2Flong-2.webp&w=1200&q=75)
Deposits are added to AAVE as collateral
![strategy illustration](/_next/image?url=%2Fimages%2Fstrategy%2Flong-3.webp&w=1200&q=75)
Stablecoins are borrowed from AAVE
![strategy illustration](/_next/image?url=%2Fimages%2Fstrategy%2Flong-4.webp&w=1200&q=75)
Stablecoins are swapped to the deposit asset. The process is repeated until the target leverage is achieved
Toros leverage tokens are best used for short term directional upside. Single direction movements can exceed returns compared to typical perp leverage products. This is because Toros increases leverage as its price increases, to maintain the leverage range. Toros uses AAVE to manage debt leverage positions.
All Toros leverage tokens have built-in protection against downside liquidation. For example, if you had held a typical -2X ETH Short perp from March to May 2021, you would have been liquidated several times over as ETH went up in price. Holding the Toros Ethereum Bear -2X however, would have protected you from liquidation. This is because Toros rebalances on price movements to maintain the leverage range. When a Toros token decreases in value, its leverage also decreases.
In sideways (up-down) markets, Toros pools can underperform typical leverage products. This is known as Volatility Decay. Toros pools work similarly to Leveraged ETFs. They maintain a leverage range by rebalancing AAVE debt. Volatility decay occurs through rebalancing, rebalance fee, and debt interest. Toros pools are therefore intended for short term directional bets for best results.