TLX is a leveraged tokens protocol on Optimism that launched on 05/16/2024.
Leverage tokens utilize reactive rebalancing, which means no liquidations or margin management.
Let’s assume a BTC long is minted.
As BTC declines in price, the leverage inherently increases in price. This is because the money borrowed is fixed, but the collateral’s value is dropping.
This works the other way, too: when BTC appreciates, the leverage
