A trader explains how leverage in perpetual futures automatically decreases over time on Hyperliquid, reducing returns on winning trades. BounceTech created leveraged tokens on HyperEVM that automatically rebalance to maintain target leverage, delivering significantly higher returns in trending markets but potentially underperforming during sideways price action.
A trader highlights the performance difference between Hyperliquid perpetual futures and BounceTech leveraged tokens, noting that a 5x perp deleveraged to 1.4x during a trend while a rebalanced leveraged token maintained its target leverage and achieved higher returns. The post promotes leveraged tokens as an alternative offering directional exposure without liquidation risk and mentions an active trading competition.
Tezn highlights BounceTech's tokenized leverage product for Hyperliquid markets, which offers 5x long/short exposure across 200+ assets without traditional margin management or liquidation risks, contrasting with conventional perpetual futures trading.