SOL 2X with Decay

ayer

The SOL 2X with Decay indicator models the theoretical performance of a 2x leveraged Solana (SOL) token, factoring in daily decay from borrowing costs and compounding effects.

Core Formula:

The indicator calculates the leveraged price using the following formula:

Use this image to check the Formula-


* I have used formula 1 for the easy calculations. *
Where:

SOL Price: Current price of Solana (SOL) in USDT.
2: Leverage multiplier, doubling the daily returns of SOL.
Decay Rate: Daily cost or decay rate (default: 0.03% or 0.0003).

(Decay rate vary from 0.03% to 0.1%. You can take 0.05% if you want to add more decay)
Days Elapsed: Time (in days) since the specified start date.

How It Works:
Blue Line: Simulates the price of a 2x leveraged SOL token, considering exponential decay.
Orange Line: Plots the actual SOL/USDT price for comparison.

Use Cases:

Understand the long-term impact of decay on leveraged tokens.
Compare leveraged token performance with the underlying asset.

If you have any doubts feel free to Tag me in the chat at Vritant Sawhney or UID 01HJ30D3E0XY6WDKWRCRD93G40.

Thanks to Prof Adam. NO DAYS OFF.