LINK just got a magic internet asset.
Now you can get long and short exposure to LINK, at 2x leverage, in a matter of seconds.
This market is powered by a Chainlink price feed, with a heartbeat of 27 seconds, meaning that your positions will get minted and confirmed in 27 seconds or less.
Not bad, right?
LINK has really sexy price action, making it an attractive market for performance based traders, who want to try and make gains by calling price movements.
Convinced the price is going to rocket up? Mint a 2x leveraged long and earn up to 200% on all upwards price movements. Sure it’s going to drop? Lock in a 2x leveraged short and win off the dip.
You can also build LINK exposure in Float into a number of trading strategies.
Worried about price drops? Open a LINK short and go delta neutral. Whether LINK goes up or down, your portfolio won’t lose value AND you’ll earn sweet rewards.
With LINK staking on the horizon you’ll soon be able to lock up your LINK in exchange for dope APY. A LINK stake and a short in Float would have you earning pretty substantial yields in two places.
Plus, for Chainlink node operators, being able to gain non-overcollateralized short exposure to LINK means a reduced risk return from the network fees earned via staked LINK.
Float creates magic internet assets around degen crypto assets, allowing you to get easy exposure without worrying about debt positions or liquidations.
What is a magic internet asset?
Think of it as a tokenised perpetual swap pool.
In smooth brain terms, we take a price feed for an underlying asset, in this case LINK.
Then we create two pools of capital – a long side and a short side.
You enter the market by minting a position on one side using a stablecoin.
The protocol tokenises that position and issues an amount of either Long LINK or Short LINK to the user’s wallet.
As the price moves, capital in the market moves between the two sides accordingly.
Price go up means value moves to the long side. Price go down means value moves short.
To remove the need for liquidations or debt positions, our protocol uses a novel mechanism called floating exposure.
What this means is that your price exposure ‘floats’ in line with the balance between the long and short sides of the market.
In a perfectly balanced market both sides would have 100% exposure. As one side becomes overbalanced its exposure drops linearly from 100% to 0%.
The exposure level is displayed in the app for each market.
Remember that to get the real exposure of a position multiply the floating exposure by the leverage.
A 2x leveraged position with 100% exposure means real exposure of 200%. A 2x leveraged position with only 50% exposure has 100% real exposure.
Float Capital doesn’t have a token yet. In the meantime, our users can earn alphaFLT.
AlphaFLT, or aFLT, is the alpha version of our token. It gets issued to users in the protocol, and scales up with market imbalances to incentivise users to take underbalanced positions.
You currently can’t trade aFLT, BUT, when we ship the final version of the FLT token we’ll allow you to redeem aFLT for FLT at a favourable rate.
This piece is not financial advice. Any kind of DeFi activity comes with risk, and should only be attempted by serious degens who understand this and know how to navigate it.
To mint a position in our LINK market go here.
To learn more about the risks inherent with using Float, read our blog post here.
To understand how the protocol and our magic internet assets work, read our docs.