How to unwrap your FLI tokens
We've migrated the FLI tokens to new BTC2x and ETH2x tokens. Here's how to exit your position.
March 12, 2024
This week the Index Coop launched new ETH2x and BTC2x leveraged tokens on Ethereum mainnet! ETH2x and BTC2x are meant to replace the legacy FLI tokens and utilize our more modern Index Protocol and Aave v3 infrastructure.
If you are a current holder of the ETH 2x Flexible Leverage Index (ETH2x-FLI) or the BTC 2x Flexible Leverage Index (BTC2x-FLI), your tokens have already been rebalanced into the new ETH2x and BTC2x tokens. As a result, the legacy FLI tokens function as a “wrapper” around the new 2x tokens. If you wish to maintain your leverage exposure to ETH or BTC, no action is required! The new 2x tokens will continue to operate under the hood of the FLI tokens and fees have been disabled.
However, if you want to “unwrap” your new 2x tokens or redeem your FLI tokens entirely, this guide will walk you through the necessary steps via the Index Coop App.
Step 1: Unwrap your FLI Token
To unwrap your FLI tokens and receive the new 2x tokens in return, use these links with the pre-populated route for ETH2x-FLI or BTC2x-FLI.
After connecting your wallet and inputting the amount of FLI tokens you would like to unwrap, you may be prompted with a token approval.
Once you’ve approved the contract, you can submit the transaction to “unwrap” (or redeem) your FLI tokens in exchange for the underlying 2x token.
From there, you can do whatever you’d like with your new 2x tokens! Provide liquidity on Uniswap, trade actively with the Index Coop App, or close your position outright (i.e. Step 2).
Step 2: Redeem your 2x Token
If you want to close your leverage position altogether, you can redeem your 2x tokens using these pre-populated trade routes in our app: ETH2x-FLI, BTC2x-FLI.
After connecting your wallet and inputting the amount of 2x tokens you would like to liquidate, you may be prompted with a token approval.
Once you’ve approved the contract, you can submit the transaction to flash redeem your 2x tokens in exchange for the asset of your choosing (ETH, WETH, WBTC, USDC).
Step 0: Sell your FLI Token
FLI holders also have the option to swap their tokens against DEX liquidity. However, FLI liquidity is unpredictable and likely to dissipate over time; consequently, users should consider unwrapping (Step 1) and redeeming (Step 2) instead of swapping whenever possible.
To swap your FLI tokens using DEX liquidity, use these links for ETH2x-FLI or BTC2x-FLI within the Index Coop App.
After connecting your wallet and inputting the amount of FLI tokens you would like to swap, you may be prompted with a token approval.
Once you’ve approved, you can submit the transaction to swap your FLI tokens in exchange for the asset of your choosing (ETH, WETH, WBTC, USDC). Swaps are executed via 0x and MEV protection is recommended.
FLI holders may also consider swapping via DEX Aggregators like CoWSwap or 1inch.
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Disclaimer: This content is for informational purposes only and is not legal, tax, investment, financial, or other advice. You should not take, or refrain from taking, any action based on any information contained herein, or any other information that we make available at any time, including blog posts, data, articles, links to third-party content, discord content, news feeds, tutorials, tweets, and videos. Before you make any financial, legal, technical, or other decisions, you should seek independent professional advice from a licensed and qualified individual in the area for which such advice would be appropriate. This information is not intended to be comprehensive or address all aspects of Index or its products. There is additional documentation on Index’s website about the functioning of Index Coop, and its ecosystem and community.
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