(Eth is Money)²
(ETH is money)² = dETH
dETH is a novel token that provides holders with leveraged exposure to the price of ETH, without risking a full default of the funds being leveraged. When ETH is deposited, dETH uses this as collateral to DAI (via Maker) and buy more ETH, resulting in overcollateralization. dETH then rebalances as the market moves, to avoid defaulting and maintain a high exposure to price movements.

Why hodl dETH?

If you are convinced of the long term positive prospects of Ethereum and the ETH price, you would want to hodl dETH for the long term to gain the maximum exposure to this upside. You might also hodl dETH short term if you believe the price of ETH will make a temporary positive move and use dETH’s accelerated price action to benefit from such a move.

How to use dETH?

Simply head on over to the dashboard There you can fill in an amount of ETH that you wish to convert into dETH or redeem your dETH for ETH. You can also buy and sell dETH on 1inch.exchange

How it Works

dETH builds on top of the Defi Legos of MakerDAO and DefiSaver. dETH places ETH it receives into an underlying Maker Vault, where it then loans DAI, which it then sells for ETH. This creates a situation where dETH is always aiming to have roughly a 2x leveraged position. DefiSaver’s automation service automatically increases or decreases the leverage as needed in the background.

Made for you

Forged by Foundry

Foundry builds products for a radically free world - dETH is just the beginning. We're looking for more freedom lovers to add energy to this beast, so that in addition to building unstoppable free products, Foundry itself can't be stopped on this mission.

Who is dETH for?

dETH is for everyone who believes in the long term future of Ethereum and wants extra exposure to the upside of widespread Ethereum adoption. dETH is also for anyone wanting to speculate on the price of ETH in a leveraged fashion in the short term.

FAQ

What happens when the market price of ETH drops?
dETH’s price drops faster.
What happens when the market price rises?
dETH’s price will rise faster.
How quickly can I redeem my dETH tokens and withdraw my original ETH?
You can redeem your ETH immediately, provided the redemption does not place the remaining dETH collateralization at under 160%. This is to allow DefiSaver time to move the remainder of the contract back to 200% collateralization.
Why does the price of dETH rise if the price of ETH goes up?
Because under the hood, dETH represents a leveraged position of ETH. In other words, the contract borrows money against the ETH it receives and buys more ETH. The loan amount remains stable but the price of ETH fluctuates, if it rises the holders of dETH win more than they would have won otherwise, and if it drops, they lose more than they would have otherwise.
Why does each user mint new dETH? Doesn’t that make dETH an inflationary asset?
dETH is neither inflationary nor disinflationary. Every dETH is backed by the ETH collateral locked up. More people minting dETH does not dilute the value of existing dETH.
What happens to dETH tokens that are redeemed, are they burnt?
When a dETH token is redeemed, it is removed from circulation and the corresponding % of excess collateral is paid out to the redeemer.
What is the Maker DAO CDP?
CDPs (Collateralized Debt Positions) are the mechanism that MakerDAO uses to lock up collateral and then allow a user to issue debt against that position. In the case of dETH, the dETH contract is the user of the CDP and tokenizes exposure to the CDP for its token holders.
How do I contact the dETH team in case of any issues/bugs?
Just Tweet us @FoundryDAO, join the Telegram, or email [email protected].