2factor finance is grounded in a body of open research. Below you'll find our whitepaper, simulation code, and interactive explorers for studying leveraged ETF mechanics and productive bands on real-world assets.
FoundationalThe foundational paper describing perpetual tranching, the balancing rate, and the design principles behind durable leveraged and deleveraged derivatives.
Empirical companion to the whitepaper. Simulation results across asset classes, a full decomposition of the leveraged-ETF universe, and stress tests across drift–volatility regimes.
Python notebooks and reference implementations used to backtest the protocol against historical price data. Includes parameter sweeps and sensitivity analyses.
Audited Solidity source for the core tranching vault and balancing-rate mechanism, along with deployment scripts and integration tests.
Capital-weighted leverage distribution across Hyperliquid perp accounts. Cohort breakdowns from dust to mega-whale, multi-snapshot pooled across 64,000+ accounts — empirical view of where capital actually sits versus where the headline leverage figures suggest.
Decomposed financing drag across all long single-stock leveraged ETFs. Browse premiums by ticker, asset class, and AUM — the empirical basis for the leverage cost analysis in the whitepaper.
Simulate productive bands on single-stock equities and crypto assets. Adjust drift, volatility, and leverage to visualize where leveraged derivatives thrive or decay.
Backtest leveraged (Jr) vs spot positions on real assets like BTC, NVDA, GLD, and SPY. Visualize wealth paths, durability curves, and rolling optimal-leverage distributions across configurable date ranges.
Capital-weighted analysis of 64,863 Hyperliquid accounts. 58% of leveraged-long capital sits at modest (≤3×) leverage, concentrated in whale and pro cohorts overpaying ~$20M/year in perp funding for what BTC-Jr would deliver at a fraction of the cost.
An empirical analysis of long LETF holding periods. $44B sits in misaligned products, paying $1.3B/year for the wrong horizon — observable demand for a buy-and-hold leverage primitive, and the floor on a much larger latent market.
A 10-year thought experiment: why the gap between moderate leverage and every BTC yield product persists, and what changed.
A five-year reckoning of MicroStrategy's Bitcoin accumulation flywheel — and the architectural move that severs its dependency on the mNAV premium.
A walkthrough and quantitative analysis of LETF rebalancing mechanics: closing-window liquidity dynamics, the dealer counterparty chain, and the reconciliation between per-event mechanical pressure and observed financing premiums.
