2factor Launches Onchain Leverage Product on Coinbase's Tokenized Stocks
On September 17, 2026, 2factor.finance announced the launch of a new leveraged product built directly on Base for Coinbase’s tokenized stocks. This innovation aims to address long-standing inefficiencies in traditional leveraged ETFs by reducing costs and enabling investors to hold leverage indefinitely without significant performance decay. Traditional leveraged ETFs suffer from beta slippage due to volatility drag and financing drag, which compound against returns over time. These issues limit their viability for long-term use. 2factor claims it eliminates the structural cost of hedging by sourcing leverage from stable-yield investors rather than short sellers, reducing costs by approximately 75%. The product also adjusts leverage targets to be more suitable for compounding in a buy-and-hold context using Kelly-optimal multiples tailored per asset. This approach is expected to expand the addressable market significantly and could signal broader potential for onchain financial products.
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