eITY | Inverse 3x, 5x, 10x Leveraged US Ten Year Yield Hedge
Like eTY, eITY allows you to mint inverse leveraged assets that inversely track the Rate. The same mintage, swap, and burn dynamics apply to eITY. However, when paired with eTY, one can minimize short-term risk as the assets move tick per tick against one another. While this exposes the position to impermanent loss, depending on the leverage used while minting, this is usually quickly offset by ISA bond rewards when sold to the Treasury. Furthermore, the mintage of both allows additional short-term flexibility for your hedging objectives. The same safety measures utilized for stabilizing eTY against a black swan event are present for eITY. See our Economics section for more information regarding protocol incorporated safety measures. eITY products can be bonded and sold to our Treasury under the Bond page. Both 7 and 14-day vesting periods are available.
Red symbolizes the negative correlation these assets have to a percentage move in the Rate. Furthermore, the increasing color scale represents the amount of leveraged used and the volatility of the asset. The darker the color, the more volatile. Finally, to ensure there is zero doubt when trading these assets, the leverage capacity is clearly marked. The asset is considered bullish because of the utility it has when rates fall - which is generally bullish for the overall market. Do not let the color immediately fool you.
Last modified 11mo ago