Gate.io Has Added dydx (DYDX) Leveraged ETFs-Announcements-Gate.io

Gate.io 09-09 11:52 相关类型 其它
Gate.io has added the following ETFs: DYDX3L and DYDX3S. 3L is a long
position while 3S is a short position, which tracks the price change
range of the underlying asset and changes with amplified range
percentage.



With the updated re-balancing rules, the leveraged
ETF product now regularly re-balances to a target leverage (2.3X) if a
certain criterion is met at 0:00 UTC+8 on a daily basis; Besides the
scheduled re-balancing, when the real-time leverage of the product is
larger than 3x, it will re-balance as well.



Below are the new re-balancing rules:



1) Irregular re-balancing: When the real-time leverage is over 3 times,
irregular re-balancing will be triggered. The leverage will be adjusted
to 2.3 times.

2) Regular re-balancing: Everyday at 0:00 UTC+8, when
the real-time leverage is less than 1.8 times or above 3 times; or the
underlying asset price changes drastically (e.g. up or down over 1 % on
contract index price), regular re-balancing will be triggered to adjust
the leverage to 2.3 times.

3) After the upgrade, ETF’s market
volatility will decrease and frictions over a longer time will be
reduced; but it is far from completely avoiding the long-time frictions.
The ETF performs better in a one-sided market as it will use profit to
increase position and decrease position when there is a loss, but it is
not suitable for long term holding and performs bad in a swinging
market.



Trade DYDX3L at https://www.gate.io/trade/DYDX3L_USDT

Trade DYDX3S at https://www.gate.io/trade/DYDX3S_USDT



About Leveraged ETF

The leveraged ETF product re-balances to a target leverage if a certain
criterion is triggered. When it re-balances, profit will be used to
expand the position while the loss will lead to decrease of the
position. When trading with ETFs, you do not have to pay a margin. You
can simply buy and sell it to enjoy increased exposure like you are
trading with leverage. ETF products are managed and hedged in the
perpetual contract market. We charge a management fee daily to
compensate for the funding payment and trading fee which is incurred at
perpetual contract markets. No extra funding fee is charged. By
optimizing the fund management, the cost and risks for you to get
leveraged exposure are significantly reduced.



Risk Warning

Digital currency prices are susceptible to high volatility, which is
even more tangible for the leveraged ETF products. Therefore there is a
risk to suffer amplified loss. Please fully understand the product and
risks involved before trading. Furthermore, the change of an ETF product
is not always about the target times of the underlying asset over a
certain time span as the result of scheduled or irregular re-balancing.
An ETF product is hedged in a perpetual contract market, the profit will
expand the position and the loss will decrease the position, which will
incur greater friction in a swinging market. Due to the rebalancing
mechanism and the holding cost, the ETF is not suitable for long term
holding. It has greater fluctuation and higher risk. Please be cautious.
For more details, please read instructions about Leveraged ETFs at our
Help Center.



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Gate.io Team



Sep 9, 2021




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