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I wrote a new article on leveraged tokens! I think it does a better job of explaining what they do than the other ones:

help.ftx.com

Disclaimers None of this is investment advice. Much of the below analysis ignores any difference between futures and spot prices, and ignores the effects of fees. It also ignores slippage incurre...

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I like how all hedging happens on public markets so everyone can track fair pricing. Though why market order? If BULL needs to sell, BEAR needs to buy - they could just match internally (at least partially).

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If this is operationally hard just have the smallest side do a passive order first?

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Unlikely that people create BULL and BEAR at exactly the same size. The real answer here is that if you're creating large size you should have out orders on the future orderbook to hedge--part of the reason we suggest just buying the LT on the spot market for most people.

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Ah I was talking about the daily rebalancing: if bitcoin goes up 10% the bull will be buying and the bear will be selling. Seems like 2 market orders the opposite way at the same time.