An overview of leveraged tokens

The vast majority of financial instruments in the crypto are adopted from traditional finance, and leveraged tokens are no exception. Let's take a quick look at the transformation of investors' desire to reduce risks into what we mean by these tokens.

It is no secret that risk diversification benefits investors in the long term. Only until recently, the ability to buy fractional shares for portfolios in the traditional finance space was non-existent. Additionally, it takes quite a lot of knowledge and time to successfully manage a portfolio of many stocks. The solution was mutual funds and exchange-traded funds (ETFs) where a professional portfolio manager invested money on behalf of a group of people.