VISP Leverage Tokens (ETH/BTC 2x 3x -1x)

How does the VISP dApp interface work for Leverage Tokens ?

The VISP dApp interface offers easy access to leverage, featuring built-in liquidation protection and low, transparent fees. Built on VISP (Vingt.io Index And Strategy Protocol), our automated tokens simplify leverage trading by using Aave V3 to provide six different strategies on ETH and BTC. The leverage products available via the VISP dApp are fully collateralized tokens, not perpetual contracts.

How do the leverage tokens work?

Both leverage tokens and perpetual contracts allow users to amplify their exposure to an asset, but they differ in their collateral structure. Perpetual contracts let traders speculate on asset prices without holding the underlying asset, using collateral like WETH, WBTC, or stablecoins to open leveraged positions. Traders need to maintain enough margin to avoid liquidation if the market moves against them.

Leverage tokens, on the other hand, are fully collateralized by the underlying asset. For instance, the ETH3x token supplies WETH to Aave, borrows USDC, and swaps it for more WETH, repeating this process to achieve the desired leverage. This creates an overcollateralized debt position directly tied to the asset's value. All VISP leverage tokens adjust their leverage ratios in real-time through rebalancing within set limits. This automated rebalancing provides liquidation protection and a hands-off experience for users. Additionally, leverage tokens can be cheaper than perpetual contracts due to the lower borrow rates on Aave compared to typical funding rates on perpetual platforms.

Is there liquidation risk?

Each leverage token in VISP automatically rebalances the underlying collateralized debt positions on Aave V3 to prevent liquidation during volatile periods. Redundant keeper systems constantly monitor the leverage ratio for each token and trigger a rebalance if it exceeds the maximum leverage ratio. The ripcord system adds another layer of protection, allowing anyone to trigger a rebalance if the leverage ratio surpasses a predefined threshold, with a reward of 0.5 BNB for triggering a ripcord rebalance.

How do I buy leverage tokens?

To buy leverage tokens, log in to the Vingt.io dApp and access the VISP swap page. Users can directly access the Flash Mint Leverage smart contract to buy the selected leverage token. Transactions will be completed on-chain in real-time.

How do I sell leverage tokens?

To sell leverage tokens, log in to the Vingt.io dApp and access the VISP swap page. Users can directly access the Flash Mint Leverage smart contract to sell the selected leverage token. Transactions will be completed on-chain in real-time.

How long should I hold leverage tokens?

There is no specific duration for holding leverage tokens, though they are generally not intended for long-term holding. Factors impacting leverage token performance include tracking error, volatility drift, rebalancing overheads, and costs and fees compounding over time. Users should frequently monitor their holdings and understand how these products work and are expected to behave differently depending on the market environments.

I'm having trouble buying or selling my tokens. What can I do?

If you encounter difficulties trading leverage tokens via the VISP dApp, check the following:

• Ensure you are connected to the BNB Chain if you are selling a leverage token.

• Confirm you are not a restricted person, as restricted individuals cannot buy or sell VISP tokens.

• Make sure you have signed the terms and conditions.

• Verify if the token you’re trying to mint has reached its supply cap.

If troubleshooting doesn't resolve the issue you can email us at [e-mail]

What are the costs and fees for VISP leverage tokens?

VISP charges annual fees based on the product type: 1x and 2x products have a 3.65% fee, while 3x products carry a 5.48% fee. Additionally, all products incur issuance and redemption fees of 0.10%. Using assets within Aave involves a “Cost of Carry,” which is the difference between the interest earned on deposits and the interest paid on debt. For example, if ETH2x deposits $1,000 of WETH and borrows $500 of USDC, with ETH deposits earning +2% APY and USDC borrowing costing -5% APY, the net Cost of Carry is -1% APY, slightly reducing the position’s value over time. This cost can vary based on fluctuating borrowing and deposit rates, so regular monitoring via the app is necessary.

Rebalancing costs include small fees for swapping assets through DEX pools, such as the 0.05% swap fee in Pancakeswap V3 WETH/USDC pools, and “price impact,” where larger swaps result in higher overall prices for buys or lower prices for sells, gradually reducing the position's net value over time.

Are there any front-end fees for trading leverage tokens at VISP dApp?

No, the VISP dApp does not charge front-end fees. All fees are applied at the smart contract level.

Why do I see a “Not available for Restricted Persons” message?

The VISP Leverage Suite is unavailable to Restricted Persons, defined as individuals or entities in jurisdictions where the offer, sale, or purchase of our token products is unlawful or prohibited. This includes U.S. persons, as defined by citizenship, residency, and other criteria.

What is Leveraged Flast Mint

Leveraged Flash Mint operates uniquely within decentralized finance (DeFi), utilizing the Debt Issuance V3 Module instead of Basic Issuance. This module allows for the creation of leveraged positions by dynamically minting new units of leveraged tokens directly from their underlying assets. Leveraged Flash Mint integrates seamlessly with the Aave V3 leverage module, enhancing its capability to efficiently and cost-effectively amplify exposure. This mechanism is seamlessly integrated into the VISP leverage token architecture and is accessible through the VISP dApp, requiring no additional steps from users.