3X Long Dogecoin Token (DOGEBULL) is a FTX issued ERC20 index token which seeks a return that corresponds to 3 times the daily return of longing Dogecoin.
What Are Leveraged Tokens?
Leveraged tokens are innovative ERC20 assets that can give you leveraged exposure to cryptocurrency markets, without all the nuts and bolts of managing a leveraged position.
For example, take ETHBULL, a 3x long ETH token. For every 1% ETH goes up in a day, ETHBULL goes up 3%; for every 1% ETH goes down, ETHBULL goes down 3%.
There are currently four leveraged tokens for every future on FTX: BULL (+3x), BEAR (-3x), HEDGE (-1x), and HALF. Generally, if ETH goes up 1% during a day, then ETHBULL goes up 3%, ETHBEAR goes down 3% ETHHEDGE goes down 1%, and ETHHALF goes up 0.50%. If ETH goes down 1% during a day, then ETHBULL goes down 3%, ETHBEAR goes up 3%, ETHHEDGE goes up 1%, and ETHHALF goes down 0.50%.
Some futures may have leveraged tokens with other margin ratios.