Toros Finance is a decentralized finance (DeFi) product that integrates dHEDGE, Aave and 1inch under the hood to offer a suite of on-chain tokenized derivatives products. Currently Toros is deployed on Polygon and is under development to deploy on Optimism.
Toros offers the ability to:
- gain leveraged exposure with a single token,
- access impermanent loss-protected yield farming,
- take advantage of automated basis trading strategies, and
- utilize additional structured products
At launch, Toros enables leveraged tokens, with future features to be released as they’re developed.
Initially, Toros is launching with 4 leveraged tokens:
- ETHBULL and BTCBULL: at target leverage ratio of 3, and
- ETHBEAR and BTCBEAR: at target leverage ratio of 2
Toros leveraged tokens are best used for short term directional upside. Single direction movements can exceed returns compared to typical perp leverage products. This is because Toros increases leverage as its price increases, to maintain the leverage range.
Toros uses dHEDGE, AAVE and 1inch contracts to manage debt leverage positions this allows for an auto-balancing system to manage and maintain the capital to stay within range of the initial parameters.
- Liquidation protection
- Rebalance Mechanism (link to docs): https://toros-finance.gitbook.io/toros-finance/toros-finance/leveraged-tokens/rebalance-mechanism
dHEDGE Manager usage
Toros has been built natively integrated with the dHEDGE SDK, enabling dHEDGE managers to have one-click access to new leverage tokens within their funds.
At launch the integration is pending governance support, once this vote is passed the Toros tokens will be enabled for managers to use.
All Toros leverage tokens have built-in protection against downside liquidation. For example, if you had held a typical -2X ETH Short perp from March to May 2021, you would have been liquidated several times over as ETH went up in price. Holding the Toros Ethereum Bear -2X however, would have protected you from liquidation. This is because Toros rebalances on price movements to maintain the leverage range. When a Toros token decreases in value, its leverage also decreases.
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About Toros Finance
Toros Finance is a dHEDGE incubated protocol integrating Aave and 1inch. Toros Finance aims to simplify access to complex derivative strategies, safely, via offering these strategies through a single token.
Toros Finance offers a suite of on-chain tokenized derivatives products. Currently Toros is deployed on Polygon and is under development to deploy on Optimism.