Research
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.
Foundational
Whitepaper
The foundational paper describing perpetual tranching, the balancing rate, and the design principles behind durable leveraged and deleveraged derivatives.
Live
Whitepaper Supplement
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.
Live
Models & Code
Protocol Contracts
Audited Solidity source for the core tranching vault and balancing-rate mechanism, along with deployment scripts and integration tests.
Coming Soon
Interactive Explorers
Perp Leverage Distribution Explorer
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.
New
LETF Financing Drag Explorer
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.
Live
Productive Band Explorer
Simulate productive bands on single-stock equities and crypto assets. Adjust drift, volatility, and leverage to visualize where leveraged derivatives thrive or decay.
Live
Leverage Simulator
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.
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Essays
The Demand for Buy-and-Hold Leverage Is Already Visible — in Perp Capital Distribution
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.
New
The Demand for Buy-and-Hold Leverage Is Already Visible — in LETF Holding Periods
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.
Live
Moderate Leverage Outperforms Every BTC Yield Product — Here's Why the Gap Persists
A 10-year thought experiment: why the gap between moderate leverage and every BTC yield product persists, and what changed.
Live
How MicroStrategy Becomes Premium-Independent
A five-year reckoning of MicroStrategy's Bitcoin accumulation flywheel — and the architectural move that severs its dependency on the mNAV premium.
Live
LETF Rebalancing Costs
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.
Live