For the past 1.5 years, I have been learning about crypto on my own and as a result my learning curve was a lot steeper. With nothing to quantify my knowledge, other than some articles I wrote with some of my friends, it didn’t feel quite well or “pursuable” for that matter. With the bear market still running in, and no “external” stimuli to force me into doing crypto, I sat down and started thinking about crypto from a first-principles thinking. These clearly helped me in realizing what crypto is and how it “can” shape the future.

My core motive of diving into crypto is the wide-scope it offers to making things around it. Something which is a public good and something which I can claim ownership of. With the goal of making my own crypto protocol one-day , I started the year looking for some opportunities in order to learn from the industry experts.

Had these two things in my mind during the first months of this year : 1→ Need to get industry experience in crypto in order to get better 2→ Dive straight into how onchain Derivatives work and make something around it. 3→ Do something which you can clearly quantify for the time you’re putting in. I started working with some of the devs I follow on twitter. That’s when my crypto twitter feed did the task of sharing me the opportunity ofEthereum India Fellowship 3.0. When I found that some of the chads who I closely follow were infact EIF fellows, it became obvious for me to apply.

Some of the highest tvl protocols in crypto rn are in fact the ones offering decentralized derivatives as a service. It’s only a matter of time when they follow what their traditional counterparts did : *[ Flip the spot market volume 10-20x times ] *One of my friend introduced me to Binance Leveraged Tokens and I found the idea to be quite interesting. This never occurred to me that simply creating a looping position on AAVE can provide you leveraged times Positive Price Movements if every thing goes well.

While applying for the fellowship, I explained a lot about how a tool for making Leveraged Positions on top of AAVE should exists as a decentralized counterparty to BLVTs. Rushing over the EIF form, and submitting it 30 minutes before the deadline, I was yes surprised when I got accepted and for being in the top 0.5% of the total applicants.

My implementation of a leveraged token works like these : → User deposits X WETH → I take a flashloan of 2X WETH and deposit this 3X WETH in AAVE → I borrow ( 2X*price of ETH ) USDC against my collateral → Swap these to 2X WETH and payback the flashloan → Mint a ERC20 representing the ETH 3X Leveraged Long Position

The AMM to calculate number of ERC20 tokens to mint works something like this :

Things got pretty interesting when I started talking with my mentor :Gautham, the co-founder of Polynomial Protocol which is doing some serious volume right now.Upon talking with him, he introduced me to the concept of rebalancing. On diving into rebalancing more, I found out the various implementations of Leverage Tokens does constant leveraging in order to bring the leverage back to the original leverage and this eats into the performance of the asset. After writing lots of code around Leverage Tokens, I realized I needed to study a lot about Perpetuals in order to get a fundamental learning. Gautam ser advised me to look upon various perpetuals protocols and start creating a report on them in order to better understand things.

I started diving into GMX, Mycelium, Perpetual Protocol, dydx and noting down their market making methods, collateral mechanism, liquidity mechanism, funding mechanism, etc. I will be releasing this report in collaboration with some of my friends.

Reading into more about how a Perpetual works, I finally decided to experiment with Leverage Tokens first, while reading about Perpetuals. In the next week, I will probably deploy a 3X Leveraged ETH Token on Arbitrum and Optimism and try to play around it. With the goal of making a Perp along the way,

:::: Here’s my repo link for Leveraged Tokens ::::

https://github.com/proxima424/praxisFi-new

Really thankful to Devfolio for giving me this opportunity which gave me this jumpstart to understanding Onchain Derivatives. I will be forever thankful to them for the same. Also thanks to my EIF fellows specially @prady.eth and @JainEtiksha for helping me out

For the past 1.5 years, I have been learning about crypto on my own and as a result my learning curve was a lot steeper. With nothing to quantify my knowledge, other than some articles I wrote with some of my friends, it didn’t feel quite well or “pursuable” for that matter. With the bear market still running in, and no “external” stimuli to force me into doing crypto, I sat down and started thinking about crypto from a first-principles thinking. These clearly helped me in realizing what crypto is and how it “can” shape the future.

My core motive of diving into crypto is the wide-scope it offers to making things around it. Something which is a public good and something which I can claim ownership of. With the goal of making my own crypto protocol one-day , I started the year looking for some opportunities in order to learn from the industry experts.

Had these two things in my mind during the first months of this year : 1→ Need to get industry experience in crypto in order to get better 2→ Dive straight into how onchain Derivatives work and make something around it. 3→ Do something which you can clearly quantify for the time you’re putting in. I started working with some of the devs I follow on twitter. That’s when my crypto twitter feed did the task of sharing me the opportunity ofEthereum India Fellowship 3.0. When I found that some of the chads who I closely follow were infact EIF fellows, it became obvious for me to apply.

Some of the highest tvl protocols in crypto rn are in fact the ones offering decentralized derivatives as a service. It’s only a matter of time when they follow what their traditional counterparts did : *[ Flip the spot market volume 10-20x times ] *One of my friend introduced me to Binance Leveraged Tokens and I found the idea to be quite interesting. This never occurred to me that simply creating a looping position on AAVE can provide you leveraged times Positive Price Movements if every thing goes well.

While applying for the fellowship, I explained a lot about how a tool for making Leveraged Positions on top of AAVE should exists as a decentralized counterparty to BLVTs. Rushing over the EIF form, and submitting it 30 minutes before the deadline, I was yes surprised when I got accepted and for being in the top 0.5% of the total applicants.

My implementation of a leveraged token works like these : → User deposits X WETH → I take a flashloan of 2X WETH and deposit this 3X WETH in AAVE → I borrow ( 2X*price of ETH ) USDC against my collateral → Swap these to 2X WETH and payback the flashloan → Mint a ERC20 representing the ETH 3X Leveraged Long Position

The AMM to calculate number of ERC20 tokens to mint works something like this :

Things got pretty interesting when I started talking with my mentor :Gautham, the co-founder of Polynomial Protocol which is doing some serious volume right now.Upon talking with him, he introduced me to the concept of rebalancing. On diving into rebalancing more, I found out the various implementations of Leverage Tokens does constant leveraging in order to bring the leverage back to the original leverage and this eats into the performance of the asset. After writing lots of code around Leverage Tokens, I realized I needed to study a lot about Perpetuals in order to get a fundamental learning. Gautam ser advised me to look upon various perpetuals protocols and start creating a report on them in order to better understand things.

I started diving into GMX, Mycelium, Perpetual Protocol, dydx and noting down their market making methods, collateral mechanism, liquidity mechanism, funding mechanism, etc. I will be releasing this report in collaboration with some of my friends.

Reading into more about how a Perpetual works, I finally decided to experiment with Leverage Tokens first, while reading about Perpetuals. In the next week, I will probably deploy a 3X Leveraged ETH Token on Arbitrum and Optimism and try to play around it. With the goal of making a Perp along the way,

:::: Here’s my repo link for Leveraged Tokens ::::

https://github.com/proxima424/praxisFi-new

Really thankful to Devfolio for giving me this opportunity which gave me this jumpstart to understanding Onchain Derivatives. I will be forever thankful to them for the same. Also thanks to my EIF fellows specially @prady.eth and @JainEtiksha for helping me out