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Definitions

  • Borrow Rate: the cost to borrow the asset at the DeFi Lending Protocol over the most recent epoch.
  • Epoch Length: the time between rebalances.
  • Target Leverage Ratio (TLR): the long term target for the value of the assets held by the index divided by the net asset value of the index.
  • Current Leverage Ratio (CLR): the value of the assets currently held by the index divided by the current net asset value of the index.
  • Maximum Leverage Ratio (MAXLR): the highest leverage ratio the index will ever have after a rebalance.
  • Minimum Leverage Ratio (MINLR): the lowest leverage ratio the index will ever have after a rebalance.
  • Re-centering Speed (RS): the rate at which the Current Leverage Ratio is adjusted each period to return to the Target Leverage Ratio, when the index is not being adjusted back to the Maximum Leverage Ratio or the Minimum Leverage Ratio.

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