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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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Are leveraged tokens basically like option spreads? I've got to lose a bit of theta each day, I get some leveraged linear performance, and there's a bit of convexity baked in for my management fee.

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Where are you seeing the theta coming from? If you assume that days are uncorrelated then they're as likely to gain as to lose from movements

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There is a 0.03 bps per day management fee (which is a low cost of capital, not criticizing the level) which I imagine offsets your risk on re-balancing friction requirements each day + includes the net-revenue model for the product.

SBF

@SBF_FTX

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@duganist

ah yup!

5:14 PM · Aug 23, 2019Twitter Web App