How it Works

Each Shinsu token represents a share in a managed leveraged position on an asset, for example, long SOL or short BTC at a chosen target leverage. You buy the token when you want exposure, and you sell it when you want out. Everything in between is handled for you.

Leverage tokens

When you buy a token, you join a shared position that is held at around its target leverage. From that point on, the value of your token moves more than the asset itself, in the direction you chose. A long token rises faster than the asset when the market goes up, and falls faster when it goes down. A short token does the opposite.

You never touch the underlying perpetuals directly. Your experience is simply buying, holding, and selling a token.

Leverage bounds

Every token has an inner range and wider outer leverage bounds around its target. Keeping leverage within these ranges helps the token withstand market moves that could liquidate a fixed-collateral position left on its own.

Think of the bounds as guardrails around the target, rather than a guarantee that leverage can never move beyond them.

Rebalancing

Over time, market moves naturally push leverage away from its target: gains tend to push it down, while losses tend to push it up. No rebalance is needed inside the inner range. When leverage leaves that range but remains inside the outer bounds, Shinsu's keeper aims to rebalance it toward target. There is no keeper incentive in this band.

Once leverage moves beyond the outer bounds, a keeper incentive becomes available to encourage a prompt rebalance. Rebalancing remains permissionless throughout: anyone can submit it whenever leverage is outside the inner range, including before interacting with the protocol. Neither the protocol keeper nor the incentive guarantees an immediate fill during market or network disruption.

Like all leveraged products, a market that makes large swings back and forth can wear down value over time if rebalancing happens often. That is a general property of leverage itself, not something specific to Shinsu. In smooth trending markets the token tracks its target exposure closely, while in choppy sideways markets some value is gradually lost to the cost of staying on target.

Pricing

Each token has a share price that reflects the current value of the underlying position divided across all holders. Buying mints new tokens to you at today's price, and closing burns your tokens and pays you out for your share at today's price.