Arcus has introduced pTokens on Robinhood Chain, bringing leveraged perpetual exposure into transferable ERC-20 assets. The decentralized exchange comes from the team behind dYdX and operates with Robinhood Crypto. Its new protocol converts managed perpetual accounts into tokens that users can trade across onchain markets.
Each pToken represents proportional ownership of an underlying perpetual account at a defined market and leverage level. Consequently, users can gain leveraged exposure without managing margins, collateral, or individual perpetual positions.
New Approach to Leverage
The launch includes top-tier cryptocurrencies such as Bitcoin, Solana, and Hyperliquid. Also, products like pBTC3x offer three-times long or short Bitcoin exposure. Arcus also backs leveraged stock tokens such as pHOOD3x, which is a three-times long exposure token to Robinhood shares.
Besides simplifying leveraged trading, pTokens could make these positions useful across decentralized finance. Investors could potentially move tokenized exposure between trading and lending platforms. However, leverage still creates significant risks when markets move sharply.
Robinhood Chain Gains Momentum
Robinhood Chain has also continued building activity since its July mainnet launch. The Ethereum Layer 2 now holds about $596 million in total value locked. Meanwhile, Arcus reports more than $2 billion in trading volume.
Significantly, Arcus says its daily volume now exceeds $100 million. Moreover, its perpetuals waitlist has surpassed 85,000 users. Hence, pTokens could strengthen Robinhood Chain’s role in bringing advanced trading products onchain.
Related: Galaxy Lets US Clients Borrow Cash Against Bitcoin, Ether and Solana
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
