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What’s the difference between trading leveraged tokens and futures?

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ByEzreal

The core difference between leveraged tokens and futures is the rebalancing mechanism. Leveraged tokens have a rebalancing mechanism while futures doesn’t. Because of the rebalancing mechanism, leveraged tokens can’t be liquidated.

Instead of liquidation, the rebalancing mechanism will cause leveraged tokens to lose value before a liquidation could happen. (They can’t drop to zero, but they can lose 99% of their value!)

For more details about leveraged tokens, click here.

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