igETH & igETHx

Overview

Iguru finance supported Eth LSD can be split into two different tokens: igETH (ETH Stable) and igETHx (ETH Coin), which cater to users of different risk preferences. igETH is effectively a stablecoin-like volatility product, while IgETHx is a leveraged long ETH perpetual product.

igETH and igETHx

igETH are designed as low-volatility stablecoin assets collateralized by on-chain native assets. In contrast to stablecoins pegged to the US dollar, they offer the advantages of decentralization, high capital efficiency, and strong scalability. igETHx is designed to absorb the main volatility of ETH, so it can be seen as a leveraged derivative of ETH. Unlike other ETH derivatives on the market, igETHx itself has significant advantages, such as low fees and low risk of liquidation. It is suitable for users who have a long-term optimistic view of ETH's development.​ It can calculate the leverage of igETHx as

$L_{ethc}(t)=\frac{CR(t-1)-0.1}{CR(t-1)-1}$

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Therefore, in the normal operations of iguru Finance, igETHx leverage should be at the range of 1X-4X.