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Ten Year Leveraged Products

eTY | eITY: At inception, a base $10 price to asset ratio was established. Every mint must utilize $10 worth of ISA to mint, even if price decreases or increases - with the cost reflecting the changes to the Rate pulled from the oracle. For example, if the Rate appreciated 10% (i.e., 2.0% increasing to 2.2%), eTY 3x leveraged asset would cost $13 worth of ISA, and eITY would cost only $7 worth of ISA to mint. The inherent risk to this type of asset results from being calculated from the last price move - if the Rate were to move up 34% in a single pip, eITY3x would strike 0. The same would go for eTY3x if the Rate Lost 34% in a single pip. While it is safer than pulling from a value at the close type of oracle feed, there is a theoretical chance that either asset could strike 0. In which case, the asset that hit 0 would need to be reset to base 10.
The basic calculation for establishing the synthetic asset’s price off of the percent change pulled from the data feed:
InitialeTY3xPrice/100/100+/(3xPercentChange)=FinaleTY3xPriceInitialeTY3xPrice/100/100 - +/-(3x Percent Change) = FinaleTY3xPrice
FinaleTY3xPrice subsequently becomes the new initial price.
However, to mitigate this risk, if a move is detected according to the following percentage structure, the following results would occur per leveraged value:
If the underlying Rate Value of the eTY3x asset moved down 33% in a single pip, then eTY3x would move 93%, with the other 7% occurring based on the new price pulled from the latest feed update.
If the underlying Rate Value of the eTY5x asset moved down 20% in a single pip, then eTY5x would move 90%, with the other 10% occurring based on the new price pulled from the latest feed update.
If the underlying Rate Value of the eTY10x asset moved down 10% in a single pip, then eTY10x would move 80%, with the other 20% occurring based on the new price pulled from the latest feed update.
The inverse assets also have the same protective structure.
A $20,000 per transaction limit is placed on the mintage of any synthetic asset to prevent manipulation by flash loans.
Through this mechanism, the likelihood of either synthetic asset reaching absolute zero is significantly reduced.
Beyond hedging your portfolio against inflation, you can fuse these assets with other tokens and sell them to the Treasury; in return, you will receive a variable bond rate for the platform token ISA. Instead of a redeem function, eTY can be swapped on the platform with a fee of 2.5%, which will return to the Treasury to collateralize ISA further. More on that shortly.