Effective Leverage

Aspan’s leverage ratio is not fixed (unlike the static 3x in perpetual contracts) but dynamic. We call this Effective Leverage. Effective Leverage=MarketCapxBNBTVLUSD

• Dynamic Adjustment: When BNB’s price rises, TVL increases, the proportion of xBNB in the system grows, and the leverage ratio naturally decreases. The opposite occurs when BNB’s price falls.

• Target Range: The protocol uses a dynamic fee mechanism to guide effective leverage to stay within the 2.7x–3.3x range.

ExampleSuppose the vault holds $150 in assets, consisting of $100 apUSD and $50 xBNB.

• Leverage ratio = $150 / $50 = 3.0x

• If BNB’s price rises by 10%, TVL increases to $165.

• apUSD remains at $100.

• xBNB’s value rises to $65.

• xBNB’s return = ($65 - $50) / $50 = 30% (exactly 3x BNB’s return).