Key points

• Two new tokens have just been launched to help traders achieve leveraged exposure to the ETH/BTC and BTC/ETH ratio.

  • ETH2xBTC

    : Allows traders to bet on ETH outperforming BTC, denominated in ETH

  • BTC2xETH

    : Allows traders to bet on BTC outperforming ETH, denominated in BTC

• Both tokens are

  available now on Arbitrum.

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The Index Coop Leverage Suite launched with a clear vision: to be the most cost-effective, user-friendly option on the market for onchain leverage trading. For nearly four years, these tokens have facilitated billions of dollars in volume, providing traders liquidation-free, leveraged exposure to ETH and BTC at a fraction of the cost of centralized exchanges and perpetual DEXs. 

Today, we announce the latest major upgrade to the leverage suite: our first-ever leveraged pair trading products, ETH2xBTC and BTC2xETH, allowing traders to capitalise on the relative performance between these two leading crypto assets.

Introducing Ratios to the Leverage Suite

The Ratios provide traders with a streamlined solution for leverage trading the ETH/BTC ratio. Tapping into DeFi lending markets, these products automate collateralized debt management into a simple index token. The tokens target 2x exposure on their respective direction and provide three primary benefits: 

• Decreased risk via

  liquidation protection

• Lower costs and fees

• Ease of use

Decreased risk

Like all Index Coop leverage tokens, The Ratios maintains defined target leverage ratios by automatically rebalancing to ensure that collateral levels stay above liquidation thresholds. Proactive rebalancing helps avoid forced liquidations and penalties, keeping your assets secure during volatile market conditions. In periods of extreme volatility, the Ripcord function can quickly reduce leverage, adding an extra layer of security.

Lower costs and fees

These tokens are built using DeFi, helping traders avoid the steep funding rates and open/close fees commonly found on centralized exchanges and perp DEXs. For an in-depth look at the cost advantages, see our case study.

Ease of use

The Ratios are one of the simplest options on the market for traders looking to trade the ratio. No managing multiple positions, no monitoring borrowing health. Just hold the token and enjoy leveraged exposure.

More on the ETH/BTC Ratio

The ratio is the current price of ETH divided by the price of BTC and is used as a method of comparison between the value of both coins. It is one of the most traded asset pairs in the crypto space, and is often used as an indicator of trends in BTC dominance making it the focus of much debate. 

In fact, the ratio is so often discussed in certain online communities, that we have seen sites like ratiogang.com created for the sole purpose of monitoring and reporting on the ratio. The site, created by ETH bull InsideTheSimulation, tracks the price of ETH relative to BTC with certain milestones, like The Flippening, marked for celebration. 

Since 2022, the ratio has been in an extended downward trend, recently falling to a three year low as BTC rose to all-time-highs following the November election. Many traders, including Benjamin Cowen, have expressed the opinion that 0.03 likely marks the bottom of the range, and expect relative outperformance from ETH over the next 12 months. 

Trading the Ratio

Trading the ratio allows traders to capture gains from the relative performance difference between ETH and BTC rather than relying solely on absolute price appreciation. Until now, traders have primarily placed their bets on the direction of the ratio via the following methods:

Manual DeFi Lending (Aave, Morpho, etc)

One of the most common ways to play the ratio is to use a DeFi lending market. This process involves depositing the asset you believe will outperform, borrowing the alternate asset against it, and then swapping the borrowed asset to your collateral asset. 

This process is fairly straightforward, but requires manual management which carries with it the costs of rebalancing positions and requires continuous monitoring of your borrowing health. Over the years, there have been a range of spectacular liquidations by traders who pushed their leverage too far with this method.

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How The Ratios compare

Perpetuals (GMX, dYdX, etc)

Another way to gain exposure to the ratio is by trading perpetual futures. In this approach, you open a long position on the asset you believe will outperform while simultaneously opening a short position on the other asset. By doing so, you’re aiming to isolate the relative performance between the two tokens, rather than relying on their absolute price movements.

Like using a DeFi lending market, this method also demands active, hands-on management. Maintaining two open positions effectively doubles your fees, requires close monitoring of two sets of liquidation thresholds, and calls for vigilant rebalancing whenever the ratio shifts. Without careful oversight, sudden market changes can lead to costly liquidations, making this a strategy best suited for experienced traders who are prepared for continuous, detailed attention to their positions.

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How The Ratios compare

One-Time Spot Swap

Swapping ETH for BTC (or vice versa) is the simplest way to tilt your holdings toward whichever asset you believe will outperform. This approach carries no liquidation risk and demands minimal upkeep. However, your performance is still measured against USD, not purely on the ratio—so if both assets dip in USD terms, you can still end up losing money even if your ratio call was correct. 

There’s no built-in hedge or rebalancing, meaning ratio gains or losses can feel more like an after-the-fact “opportunity cost” than a deliberate, ongoing strategy.

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How The Ratios compare

What’s Next for Leverage

This release marks the first of several planned upgrades to The Leverage Suite. Over the next quarter, users can expect The Index Coop to: 

• Launch new 2x and 3x cbBTC and SOL tokens‍

• Upgrade the frontend with a variety of features, including more robust P&L functionality

• Improve the underlying leverage infrastructure for even greater efficiency 

See our recent roadmap update for more details.

‍Trade the ratio today on Arbitrum and stay tuned for more updates.