Fodl is a fully decentralized leverage trading platform using liqiudity from collateral lending platforms like Compound and Aave instead of funding rate and margin markets.
$FODL is both the governance token of the DAO, incentivize platform users and liquidity providers, and as a utility token for decentralizing platform revenue through token buybacks.
On the Fodl app select a supply asset and supply amount, a borrow asset and leverage, Fodl platform calculates how much of the borrow asset is requires to match the leverage - then you can open your position!
When a user opens the position, Fodl takes out a flash loan capable of opening the folded leveraged position in a single transaction, effectively allowing the user to leverage their principle beyond the limits of the underlying platform.
Folded leverage is where a user deposits collateral on a lending platform, borrows against their collateral, re-deposits what they borrowed as additional collateral, borrows against the newly added collateral etc etc until the desired leverage is achieved.
During beta, users will need to monitor their position and ensure not to set leverage too high. However, Fodl will soon support stop loss or take profit bots. If market conditions reach the user’s configured price, Fodl bots will unwrap a portion or entirety of the user’s position per configuration.
Long positions can be defined as Fodls where the supplied asset is a non-stablecoin and the borrowed asset is a stablecoin. The positions are for users who are bullish on market conditions and seek to profit from price appreciation of assets against fiat stablecoins.
Short positions can be defined as Fodls where the supplied asset is a stablecoin and the borrowed asset is a non-stablecoin. The positions are for users who are bearish on market conditions and seek to profit from price depreciation of assets against fiat stablecoins.
Correlated positions can be defined as Fodls where the supply and borrow asset prices are generally correlated or exactly the same (ie. stablecoins). Correlated positions are a strategy focused on maximizing governance token farming of COMP AAVE with reduced risk of liquidation due to underlying asset price movements.
-0.1% from principal when a user exits their position -2.5% on profit margin (profit margin is: (revenue - cost) / revenue) taken when user exits position -10% of platform rewards (COMP, AAVE) whenever user claims rewards
Rather than perpetual funding rates, Fodl takes flat % fee based on profit (2.5% share of leveraged profits), leveraged reward token farming (10% platform rewards) and .1% base for stop loss and liquidation protection. Fodl fees are generally lower than other forms and services of leverage, especially when including platform rewards.
Yes! $FODL is distributed to boost the rewards of the underlying collateral lending platforms