GIP-6: Launch 3x ETH Dynamic Leverage Index

Summary

The Galleon core crew wishes to launch our newest flagship structured product, based on Optimism utilizing Perpetual protocol, the 3x ETH Dynamic Leverage Index.

Abstract

Galleon’s “ETH Dynamic Leverage Index” is an Optimism-based ETH index that lets you leverage a collateralized debt position in a safe and efficient way, by abstracting its management into a simple index.

The product enables participants to take on leverage, whilst reducing costs of transacting and risks that often are associated with collateralized debt management.

Motivation

The 3x ETH Dynamic Leverage Index has a number of significant advantages over other leverage-based tokens.

Often leverage-based tokens suffer from high fees, and slow transactions, especially in times of high volatility. Our keeper bots monitor the leverage loans 24/7, which removes the need for users to act. In addition, the product also automatically manages liquidation ratios, which significantly reduces liquidations, even in black swan events.

Specification

Implementation:

  • Underlying Asset: ETH PERP

  • Target Leverage Ratio: 3.0

  • DeFi Protocol: Perpetual Protocol

  • Maximum Leverage Ratio: 4.0

  • Minimum Leverage Ratio: 2.0

Resources Requested:

None