Pay 0% funding rates
Margin your collateralized asset to yourself through Aave or Compound; pay no funding rates, only the platforms interest rate.
Your Trades Are NFTs
Funds are never deposited to FODL platform— similar to Uniswap v3 positions, your liquidity is contained within an NFT you hold in your wallet. Your keys, your coins!
Derivatives on centralized exchanges are synthetic and may not be fully backed by underlying value. With FODL positions, you have exposure to the true underlying assets.
Earn $FODL while you Trade
You earn FODL governance token for trading. FODL token holders are entitled to direct all fees gained by the FODL platform. The more you trade the more you earn.
FODL enables traders to utilize leverage for their trades without paying a funding rate. This leverage is derived from existing DeFi building blocks, such as Compound and Aave.
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What is FODL
FODL is a fully decentralized (non-custodial) leverage trading platform using liquidity from collateral lending platforms like Compound and Aave instead of funding rate and margin markets.
What is $FODL token used for?
$FODL is the governance token of the DAO that also functions as a utility token by providing incentives for platform users and liquidity providers. You can also stake your $FODL tokens either single-sided or dual-sided on Ethereum or on Polygon.
How do I open a position?
Once you open the FODL app, you will have the option to select a preset trading strategy or you can use your own strategy by selecting “New Position.” You will then select the assets you want to long and short, the principal investment amount, and your desired leverage. Now, you’re ready to open your position!
How does FODL create leveraged positions out of collateral lending platforms?
When a user opens the position, FODL takes a flash loan capable of opening the folded leveraged position in a single transaction, effectively allowing the user to leverage their principal beyond the limits of the underlying platform.
What is a folded leverage position?
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.
Can I set stop losses to prevent liquidation on my leverage?
FODL has built bots to support stop loss or take profit. If market conditions reach the user’s configured price, FODL bots will unwrap a portion or entirety of the user’s position per configuration. FODL is currently in beta testing mode for bots on BNB and Polygon.
How do I open a long position?
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. You can also open a long position against a non-stablecoin, for example, long ETH (Supply) against BTC (Borrow).
How do I open a short position?
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. Same with the long position, you can also short against a non-stablecoin, for example, Short ETH (Borrow) against BTC (Supply).
How do I open a correlated position?
Correlated positions can be defined as FODLs where the supply and borrow asset prices are generally correlated or exactly the same (i.e., 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. For example, if you supply and borrow stables with a supply APY of 2% and a borrow APY of 3%, the net APY is 1%. Over time, your borrow amount will increase by this net APY but at a very slow rate.
What are the fees for using FODL?
There are a few fees that the platform charges: • 0.1% from the 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 a user claims rewards. FODL fees are generally lower than other forms and services of leverage, especially when including platform rewards.
Are there any rewards for using FODL?
Yes! $FODL is distributed to boost the rewards of the underlying collateral lending platforms
Are there any trading restrictions?
FODL is not available in the United States nor other prohibited jurisdictions. If you are a resident of, or incorporated or headquartered in, the United States of America or another prohibited jurisdiction, then you are not permitted to receive a distribution of, or transact in, FODL.