# ETH 2x FLI Backed by RAI

**URL:** <https://gov.indexcoop.com/t/eth-2x-fli-backed-by-rai/1571>\
**Category:** Uncategorized\
**Created:** [21 May 2021 22:48 UTC](https://gov.indexcoop.com/t/eth-2x-fli-backed-by-rai/1571 "2021-05-21T22:48:21Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![sionescu](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/sionescu/32/760_2.png) [@sionescu](https://gov.indexcoop.com/u/sionescu)\
**Post date:** [21 May 2021 22:48 UTC](https://gov.indexcoop.com/t/eth-2x-fli-backed-by-rai/1571/1 "2021-05-21T22:48:21Z")

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**Overview**

RAI is a non-pegged stable asset solely backed by ETH. Together with Fire Eyes DAO, we presented RAI in a [separate proposal](https://gov.indexcoop.com/t/rai-money-god-league-an-introduction-to-dpi-backed-stable-credit/1217) for the Index community a while ago.

This post is meant as a temperature check on the idea of a ETH 2x FLI backed by RAI or a Uniswap RAI/ETH LP token.

**Parameters**

The proposed parameters for a RAI backed FLI would be similar to the ones for the ETH backed version.

- **Underlying Asset:** RAI or Uniswap v2 RAI/ETH LP
- **Target Leverage Ratio:** 2
- **DeFi Lending Protocol:** Rari Capital Fuse/CREAM
- **Maximum Leverage Ratio:** 2.3
- **Minimum Leverage Ratio** : 1.7
- **Recentering Speed** : 5%

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**Author:** ![Kiba](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/kiba/32/1436_2.png) [@Kiba](https://gov.indexcoop.com/u/Kiba)\
**Post date:** [23 May 2021 04:02 UTC](https://gov.indexcoop.com/t/eth-2x-fli-backed-by-rai/1571/2 "2021-05-23T04:02:56Z")

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I don’t see the benefit of different underlying collateral for the product. Fluctuating RAI price would make maintaining target leverage and volatility decay bigger.

If we were to, CREAM is a fork of Compound so would be the easiest platform to integrate for FLI.