Leveraged trackers

A tracker is an ERC-20 whose value follows a real market at a stated multiple. NVDAx5 moves five times as hard as Nvidia. TSLAx5S moves five times as hard, in the opposite direction. AMDx3 moves three times as hard as AMD.

They are what a bonded coin is paired to, and what turns its backing from idle stablecoin into a position.

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Reading the name

The symbol says everything about the terms: <TICKER>x<L>, with an S suffix for a short.

The number after the x is the multiple the creator chose at launch, and there is no other place the terms are recorded — the front, the hedge book and the keeper read them straight off the symbol. The token's name spells the same thing out: NVDA 5x, AMD 3x Short.

Choosing the multiple

The creator picks the multiple when launching a coin, from 1× up to the market's cap. The cap is the lower of two numbers: the product ceiling, LTFactory.MAX_LEVERAGE = 5, and the leverage Avantis allows on that pair. Gold trades at 200× on the venue and the cap is still 5×; AMD is listed at 3× and the cap is 3×. LTFactory.maxLeverageFor(symbol) returns it, and getOrCreateSharedLt refuses anything above it, so a tracker never promises a multiple its hedge cannot hold.

The venue's caps move with market hours — an equity listed at 5× off-hours can show 25× during the session. The catalogue and the on-chain listings carry the off-hours value on purpose: a tracker's multiple must be one the venue accepts at every hour it trades, or its hedge could not be opened or grown outside regular hours.

What backs a tracker

A perpetual position on Avantis, on Base, and the tracker's vault contract is itself the trader. Collateral leaves the vault for the venue when the position opens and comes back to the vault when it closes; there is no operator wallet in between, no bridge, no account number. LTFactory.venueRouting(lt) returns the pair the tracker hedges on and the trader address, and the trader is the vault.

The keeper trades that position through a delegate key the vault registers on the venue. A delegate can open, close and resize; it cannot withdraw or move the vault's USDC, and it cannot change who the delegate is. The vault owner can evict it at any time. See Risks & security.

The tracker's NAV is the position's equity divided by its supply, posted on chain by the keeper and readable by anyone. Mint and redeem are open at NAV, which is what holds a tracker at its stated value: if the market price drifts from NAV, minting or redeeming at NAV is immediately profitable, and the drift closes.

The markets you can launch against

Every market the factory owner has listed (LTFactory.underlying(symbol)): the stocks, indices, metals and commodities in the catalogue, long or short, at any multiple up to that market's cap. One tracker exists per (market, direction, multiple) that has been launched on, and the first coin to pick a new combination creates it; a combination nobody has launched on simply has no tracker yet.

The venue lists Alphabet as GOOG; the tracker is still GOOGLx5.

Equities trade venue hours. Outside them the pair is closed (feed.attributes.isOpen is false in the venue's catalogue): the position cannot be resized, and the NAV is the last mark until the market reopens. A coin's dollar price is flat over that window for that reason, not because nothing is happening to the stock.

One tracker, many coins

Every coin bonded onto NVDAx5 puts its backing behind the same Nvidia exposure. They pool. A tracker carries one position, not one per coin, which is why the hedge book sums their backing before doing any arithmetic. A coin on NVDAx3 is on a different tracker with its own position and its own reference pool; the multiple is part of what a coin shares, not only the market and the direction.

That is worth understanding as a holder: your coin's floor moves with Nvidia at the multiple in its tracker's name, and so does every other coin bonded onto the same tracker. The concentration of the whole book is public, on the hedge book page.