Beginner's Guide to ETHRISE
Overview of how ETHRISE works and what users can expect in different scenarios
ETHRISE is ERC20 tokens that represents 1.7x-2.5x long exposure to ETH. It simplify the process of opening, managing, closing leveraged long ETH position and protect users from the liquidation. In this document we will talk about how ETHRISE simplify the process of managing 2x long ETH position.

Opening 2x Long ETH Position

Let's start with opening 2x Long ETH position. We will compare the difference between the traditional way of taking leverage using lending and borrowing protocol vs the ETHRISE way.
Suppose you are very bullish on ETH and you want to get 2x profits from your capital, so you want to take leveraged long position.
Assume that the current ETH price is 3000 USDC, ETHRISE net-asset value is 100 USDC and ETH LTV is 80%.
You don't even need to understand what is LTV in order to use Risedle
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Here is step by step to open 2x Long ETH via lending and borrowing protocol vs ETHRISE:
Step
Without ETHRISE
With ETHRISE
Step 1:
User deposit 1 ETH to lending and borrowing protocol
Mint ETHRISE with 1 ETH
Step 2:
User borrow 2400 USDC
User receives 30 ETHRISE token that represents 2x long position
Step 3:
User Swap 2400 USDC to 0.8 ETH via Uniswap
DONE
Step 4:
User deposit 0.8 ETH to lending and borrowing protocol
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Step 5:
User borrow 600 USDC
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Step 6:
User Swap 600 USDC to 0.2 ETH via Uniswap
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Step 7:
User deposit 0.2 ETH to lending and borrowing protocol. Total collateral 2 ETH Total debt 3000 USDC
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As u can see, ETHRISE simplify the complex process of opening leveraged position via lending and borrowing protocol to just one single step: "Mint".
You can learn more about how to mint ETHRISE in here:

Managing 2x Long ETH Position

The biggest risk of taking 2x long ETH position is liquidation. If you are taking leveraged long position using lending and borrowing protocol, it requires you to make sure that collateral health ratio is above certain threshold, otherwise your collateral will get liquidated and you will lose your ETH.
Managing your 2x long ETH position is rather tricky and requires you to actively monitor your health ratio. Risedle solve this problem using automatic rebalancing mechanism. You don't need to worry about liquidation when you are taking the 2x long ETH position using ETHRISE.
You can learn more about how the ETHRISE rebalancing process work in here:

Closing 2x Long ETH Position

The next step is closing 2x Long ETH position. We will compare the difference between the traditional way of closing leverage using lending and borrowing protocol vs the ETHRISE way.
Assume that the current ETHRISE price has increased +5% to 3150 USDC, ETHRISE net-asset value is increased +10% to 110 USDC. ETHRISE value increase 2x because it represents the 2x long position of ETH.
Here is step by step to close 2x Long ETH via lending and borrowing protocol vs ETHRISE:
Step
Without ETHRISE
With ETHRISE
Step 1:
User withdraw 0.4 ETH from lending and borrowing protocol
Redeem 30 ETHRISE
Step 2:
User swap 0.4 ETH to 1260 USDC via Uniswap
With total value of 3300 USDC. User able to redeem it as 1.04 ETH.
Step 3:
User repay the 1260 USDC debt, now 1740 USDC debt left.
1.04 ETH with total value of 3300 USDC. User profit 300 USDC, 2x vs holding only ETH.
Step 4:
User withdraw 0.32 ETH from lending and borrowing protocol
DONE
Step 5:
User swap 0.32 ETH to 1008 USDC via Uniswap
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Step 6:
User repay the 1008 USDC debt, now 732 USDC debt left.
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Step 7:
User swap 0.23 ETH to 732 USDC via Uniswap
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Step 8:
User repay the 732 USDC debt, now user debt free.
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Step 9:
User withdraw all 1.04 from the lending and borrowing protocol. Total collateral 1.04 ETH with total value of 3300 USDC. User profit 300 USDC, 2x vs holding only ETH.
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As u can see, ETHRISE simplify the complex process of closing leveraged position via lending and borrowing protocol to just one single step: "Redeem".
You can learn more about how to redeem ETHRISE in here:

Summary

ETHRISE is a simple way to take 2x long exposure to ETH. User can enjoy leveraged gains by simply holding ETHRISE and protected from liquidation.
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Opening 2x Long ETH Position
Managing 2x Long ETH Position
Closing 2x Long ETH Position
Summary