IL Eliminator
one asset in · ~1.0× delta out · base 8453
Deposit one asset. Watch it split, lever, LP, and recombine into ~1.0× ETH — full upside, LP fees, and the impermanent loss of LPing hedged on the way up. For the bulls.
Deposit one asset.
Send WETH to the instrument. Everything after this happens in one atomic transaction — no multi-step approvals, no manual rebalancing.
One deposit, split two ways.
At 2× leverage and a 50/50 pool the optimal split is exactly ⅔ to the LP and ⅓ to the lever — derived on-chain from L and d, never hardcoded.
The ⅓ leg becomes 2× ETH.
FlashMint atomically mints Index Coop ETH2x — no pre-funding, no extra approvals. ⅓ of your capital now carries 0.66× of ETH exposure.
The ⅔ leg LPs on your venue.
Add WETH + USDC liquidity on Uniswap v4 or Aerodrome. The ETH half adds 0.33× exposure; the USDC half stays stable and earns swap fees.
Both legs, one NFT.
You receive a single position NFT representing both legs. It tracks every custodied balance — admin rescue() can never touch an open position.
The legs recombine to ~1.0×.
0.66× from the lever plus 0.33× from the LP add back to ~1.0× net delta — you track ETH on the way up while the LP keeps earning fees.
Track ETH up. Leave the LP lag behind.
A plain LP underperforms holding as price rises — that gap is impermanent loss. The leveraged long restores the missing exposure, so Hedger tracks close to a full ETH position on the upside while still earning fees.
Honestly: on the downside the leverage amplifies losses and the position is short volatility — it bleeds in chop. A directional instrument, not a neutral hedge.
If ETH moves, what do you actually get?
Compare Hedger against holding ETH, a plain LP, and a raw 2× — net of fees, carry, and friction. Drag the sliders.
Illustrative model (single monotonic move). Assumes a 50/50 pool (δ=0.5), 2× leverage, 3.65%/yr streaming, 0.2% mint/redeem, ~0.4% zap friction. Ignores volatility drag and path-dependence, which worsen choppy paths. Not a guarantee of returns.
Exit in one transaction.
Zap out to a single asset whenever you want. Both legs unwind atomically and the NFT is burned — no dangling positions, no multi-step exit.
Live, on-chain, auditable.
- 🛡️ No admin rug. Custodied legs are tracked; rescue() can never touch open positions.
- 🔒 Ownable2Step + timelock-ready · Pausable · reentrancy + slippage + deadline guards.
- 🧪 30/30 tests, incl. live-Base forks (ETH2x 99.5%, Aerodrome 99.7%, Uniswap v4 99.7%, full round-trip 98.8%).
Derived on-chain, not hardcoded
To restore a net delta t with a leverage token of ratio L and pool delta d: allocate c_LP = (L − t)/(L − d) to the LP and c_lev = (t − d)/(L − d) to the leverage leg. For L = 2, d = 0.5, t = 1.0 → ⅔ LP, ⅓ leverage. Impermanent loss for a 50/50 pool is IL(r) = 1 − 2√r/(1 + r).
Straight answers
Does this actually remove impermanent loss?+
No. IL is a convexity (gamma) cost. Hedger restores your delta to ~1×, which offsets the upside underperformance vs holding, but the position stays short volatility. A directional bet with better fee economics, not a neutral hedge.
Is it delta-neutral?+
No. Net long with amplified downside — built for bulls who want LP fees without giving up upside.
What do I get back?+
A single position NFT representing both legs. Zap out in one transaction to WETH; both legs unwind atomically.
Who custodies my funds?+
The instrument holds the leg tokens while a position is open, but it tracks every custodied balance — the admin rescue() is provably unable to touch open positions. Ownership is intended to sit behind a timelock.
When does this make money?+
When LP fees + ETH appreciation beat carry (≈3.65%/yr streaming + 0.10% mint/redeem) plus volatility drag and swap costs. In flat or choppy markets you can bleed.
Read this before you ape
- It hedges delta, not gamma → short volatility. Does not remove IL; choppy markets bleed.
- Net long, downside amplified, not delta-neutral. For the bulls.
- Volatility drag from the constant-2× token, stacked on a short-gamma LP.
- Leverage rebalance/liquidation (ETH2x band ~1.74–2.30× + ripcord), correlated with LP losses in the tail.
- ~3.65%/yr streaming + 0.10% mint/redeem + swap slippage. Win only if fees + appreciation beat carry + drag.
- Third-party dependency (Index Coop) + pre-audit smart contracts. Use at your own risk.
One asset in. ~1.0× out.
Earn LP fees, keep full upside, hedge the IL of LPing on the way up — in one transaction on Base.