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%.
Here is step by step to open 2x Long ETH via lending and borrowing protocol vs ETHRISE:
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:
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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