FLI Parameter Updates

What is the Flexible Leverage Index?

For an introduction, navigate to this page.

Where can I find the current parameters for FLI products?

View this guide to retrieve the current parameters for FLI products here. You can also visit the FLI Parameter Tracking Notion page maintained by the Leverage Indices Pod.

Which parameters are updated most frequently?

The most frequently updated parameters are Supply Cap and Max Trade Size as they depend on liquidity and market conditions across different DEXs. These parameters are often updated in tandem because Max Trade Size must scale alongside the supply of FLI tokens.

Where can parameter changes be found?

Every parameter change must be posted to the governance forum before changes or upgrades can be made to FLI Products. Additionally, the Leverage Indices Pod maintains a FLI IIP Library Notion page that serves as a historical record for FLI-related improvement proposals.

Who maintains FLI Products?

FLI Products are maintained by the Leverage Indices Pod, which is made up of team members from Set, DeFi Pulse, and Index Coop community members. See IIP-56 Extension to FLI Parameter Delegation for more details.




Supply Cap

For initial launch, each FLI product employs a guarded roll-out to ensure stability and security given its use of leverage

Members of the Leverage Indices Pod will create proposals to raise the supply cap as needed based on the supply cap framework below

Max Trade Size

The Max Trade Size is denominated in the collateral asset (ex. ETH, BTC) and applies to individual transactions. Rebalances will be TWAP'ed if above the Max Trade Size. As collateral asset prices go up, this number may be adjusted down to limit single trade price impact in DEXs and allow liquidity to be replenished

Members of the Leverage Indices Pod will monitor liquidity on Sushiswap / Uniswap and create proposals as liquidity conditions change to target ~0.5% price impact on rebalance trades

Rebalance Bot Whitelist

In the initial guarded launch, there will be a whitelist of addresses allowed to call the rebalance() and iterateRebalance() functions. Therefore, keeper addresses must be whitelisted pre-launch or go through Index Coop governance post-launch. Ripcord() does not have this restriction, and will be callable by anyone.

Members of the Leverage Indices Pod will create proposals to request whitelisting additional rebalance bot addresses

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