Token Symbol: HBAR3L
Hedera Hashgraph (HBAR) is distributed public ledger infrastructure. According to the team, it offers significant improvements over existing blockchains in five areas: performance, security, governance, stability, and regulatory compliance.The project relies on Hashgraph, an asynchronous Byzantine Fault Tolerant (aBFT) algorithm, to achieve network consensus.The HBAR token is used for staking, as well as multiple services in the network.
HBAR3L is a leveraged token that goes long on HBAR with 3x leverage, which means that for every increase in the price of HBAR in the market, the leveraged HBAR token seeks a 3x increase in its price. HBAR3L is required to maintain its target leverage and does so through dynamic rebalancing to gain a net value increase by 3% when the price of HBAR goes up by 1%.
Due to such rebalancing and investment costs, HBAR3L may suffer a net value loss when the market fluctuates. Please note, AscendEX’s leveraged tokens are not suitable for long-term investment. Investors must be cautious while investing in leveraged tokens and manage their investment risks in a timely manner.
Leveraged tokens differ from regular tokens for spot trading in that there is higher risk and volatility, which could bring about great returns or losses in a single day. Please learn more about leveraged tokens in our help center before making an investment.