Opium Network, a decentralized finance (DeFi) protocol has launched a new way for users to increase returns on Ethereum via highly leverage exposure.
The new product called “Turbo ETH” targets crypto investors who are seeking to earn more from their DeFi investments. The Opium team announced in an official Medium post that investors could now purchase a short expiry position that offers a “highly leverage exposure to the underlying asset.”
You buy Turbo for the fixed price, and if the underlying asset goes above [the] specified strike price, you’ll have an upside — you’ll earn a high return within a short period, usually a day. Turbos offer a chance of a high return, but you can also lose limited funds in a short time.
On the flip side of the so-called mouth-watering offer is the potential for things to turn sour quickly. Leveraged derivatives are only great when prices are going up. However, the product from Opium only involves losses of the ‘Turbo’ itself and not Ethereum. Put differently, users will only lose the cost of the Turbo if things go south.
The protocol also unveiled a new liquidity pool that covers the ecosystem's products. Customers stake Ethereum into the pool to cover mining Turbo mining fees. In return, they receive a share of the network's transaction fees.