LBT is a leveraged ETH token created from ETH
No margin calls and liquidations. No counterparty risk.
If you are bullish on ETH, you can create leveraged long positions by holding LBT. You don’t have to worry about margin calls and liquidations during flash crashes. There is no need to worry about counterparty risk. This is a significant advantage to other methods of leveraged trading.
What is LBT (Liquid Bond Token)?
LBT, or the Liquid Bond Token is a token that is created by the Lien protocol when iDOL stable coins are minted. LBT is designed to absorb most of the volatility or the risk component of ETH. As a result, the LBT becomes a supercharged, high risk, high return investment vehicle that does one thing very very well. That is to go long ETH, or bet on the appreciation in the dollar price of ETH. The LBT essentially performs as a 2x leveraged call option on ETH.
The powerful advantage of LBT and call options is that you won’t be wiped out of your position during flash crashes. With other methods of margin trading, you have to worry about margin calls and liquidations during severe price swings. With LBT, you can rest assured during volatile markets that your position is safe.
LBT also has a clear advantage over options on traditional trading platforms. With traditional trading platforms, one of the largest concerns is counterparty risk. With Lien, there are no intermediaries. There is no counter party. Everything is done Peer-to-Contract. Everything is on-chain.
LBT will perform like a 2x leveraged call option on ETH.
This means that your gains will be amplified compared to simply holding ETH when the ETH:USD price is increasing.
Be careful because this works the other way as well. When the ETH:USD price is going down, the price of LBT will decrease at a higher rate. And if the price of ETH is below the strike price of the LBT at maturity, the LBT will become worthless.
Use the LBT wisely as it is a double-edged sword!
Have you been liquidated out of your leveraged position when trading on traditional venues?
Or have you had to put up additional capital to maintain your position?
Flash crashes happen all the time in crypto and investors need something that will protect them from unexpected liquidations.
With LBT, there are no margin calls or liquidations.
If you are expecting a volatile market ahead, LBT will allow you to weather out the volatility without you having to worry about being forced out of your trade.
Let’s say you’re making a killing on your leveraged trade on a centralized trading exchange.
You aren’t safe until the trade is closed out and funds are withdrawn from the venue.
There have been too many cases where the users of an exchange had their gains clawed back to compensate for a loss caused by a flash crash. More importantly, you can never be sure that the counterparty to the trade has adequate capital or if the exchange will allow the withdrawal of your funds.
With LBT, your gains are always secured on the blockchain and ready for you to redeem on the maturity date.
How to get LBT
1. Launch App and Connect to your wallet
2. Go to “Trade” and select “Leveraged ETH Markets”
3. Choose the type of LBT that you want to purchase
4. If you want both iDOL and LBT, you can also select “Manual Tranche” to mint iDOL and LBT from ETH
5. That’s it! May the bulls be with you.
Get started now
Trade LBT on FairSwap or Create LBT from ETH
A protocol for creating Options and Stablecoins out of ETH
