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How to Leveraged Tokens with Phoenix Finance

Phoenix Finance allows users to trade leveraged tokens based on a variety of underliers, backed by lending pools and in collaboration with decentralized exchanges.

But how do you trade leveraged tokens to get constant leveraged exposure? Here is a short, hands-on guide from the Phoenix team.

Step 1

First of all, you have to navigate to the Phoenix homepage. Here, navigate to the “DApp” button on the top right and click on it. Then select the product you would like to access. For the purpose of this guide, please click on “leveraged tokens”.

Or you may just check on the app UI and navigate to the “leveraged tokens” section.

Step 2

Now choose the blockchain you would like to rely on to trade.

Step 3

In order to start trading, you must first connect a wallet. At present, we support Metamask, WalletConnect, WanMask, WanWallet and ezDeFi. More will be added in the future.

Click on “Connect Wallet” on the top right of the screen to link your funds to Phoenix.

Step 4

Once you have added the appropriate wallet, you can choose the leveraged tokens you would like to purchase. For example, WBTC BULL x3 will give you 3x leverage on longing BTC.

Simply pressing the 'Buy' button at the bottom and it will lead you to the buying page.

Step 5

Simply input the amount of tokens you would like to buy, or the amount you would like to pay on the buying page. Noted that you can change the currency for payment. In this very case, you may pay with USDC or WBTC to buy WBTC BULL x3.

The 'Token Information' part will introduce you to the basics of the leveraged tokens, like the current leverage, borrowing APR (the cost from borrowing assets to power leverages), total transaction fee.

Please also note that the 'asset' and 'debt' per token show the actual holdings backing one unit of the leveraged tokens. Bull tokens will have underlying coins as assets and borrowing stablecoins. Bear tokens will have stablecoins as assets and borrow the underliers.

Step 6

There will be an extra request to spend your cryptoassets in your wallet in the first contract interaction.

After the transactions are executed on chain, you can check them on the 'leveraged token' section below.

You can sell your leveraged tokens any time by pressing the 'sell' button. A similar interface will guide you to complete the selling.

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