Conversation

1) FTX launched HALF tokens today: Leveraged Tokens with 1/2 exposure to the underlying. ftx.com/trade/HALF/USDT Why bother, if you can just do it yourself without leverage? Well, the first answer is that maybe no one cares, which is fine!

SBF

@SBF_FTX

Apr 13, 2020

2) But one interesting thing is the have the opposite price action from BULL/BEAR. When markets go up HALF's BTC holdings go up, so it sells some off to get back to 50/50; when markets go down, it buys back.

SBF

@SBF_FTX

Apr 13, 2020

3) So whereas BULL/BEAR do well under momentum and poorly under mean reversion, HALF is the opposite: it does well under mean reversion and poorly under momentum, relative to a static portfolio.

help.ftx.com

Leveraged Token Walkthrough [READ THIS]

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...

SBF

@SBF_FTX

Apr 13, 2020

4) This isn't the coolest thing we've ever launched, or even the coolest thing this week (help.ftx.com/hc/en-us/artic), but it's something that complements the existing products so we decided to go ahead with it.

Replying to

and

Is there a precedent for a similar product? With the levered tokens, obviously we have levered ETFS to compare and contrast with, but I've not heard of anything similar to this before. Took me a minute to get it yesterday when you explained lol

SBF

@SBF_FTX

Replying to

@IDrawCharts

heh yeah there isn't really a precedent for it

1:19 AM · Apr 14, 2020Twitter Web App

Replying to

and

Gotcha. Well I'll have to watch and see lol, I don't like trading products without having expectations for their behavior, but if I'm understanding everything correctly, this could be a lot more useful than I initially assumed