Some said assumption is that leverage is a short-term tool. I joined @2factorfinance's Points Program and read the research behind it, and I think the real constraint isn't time. It's how leverage is built. Here's the mechanism 👇 → Two forces work against a leveraged holder Volatility drag is mathematical: swings erode a leveraged position even when the asset trends up. Financing drag is the cost of the capital behind the exposure. Where an asset's long-run drift outpaces both, there is a band of leverage ratios in which compounding works for the holder instead of against them. → The structure 2Factor splits an asset's volatility into two perpetual tranches. The senior tranche has deep downside protection. The junior tranche is leveraged, with no liquidation risk and no external hedging counterparty. The junior side pays the senior side a premium for that leverage, so leverage is priced against the cost of stable senior capital instead of the cost of shorts. → The multiple depends on the asset At Bitcoin's volatility, near 60 percent, the band closes early, so the junior targets about 1.33x, and 2x or 3x BTC products decay over long horizons. At equity volatility near 16 to 19 percent, the band extends well past 3x. The team's research puts it at roughly 2.35x for gold and 2.1x for the S&P 500. That is what Kelly-optimized means here: leverage sized to the asset. Now the stakes. Pick the wrong multiple and compounding turns against you, however right your view of the asset is. And tokenization solved distribution, not structure: tokenized equities are the fastest-growing corner of onchain RWAs, and they inherited market hours without inheriting market makers or a capital structure. The contrast is what stuck with me: Tokenization put assets onchain. Volatility segmentation puts structure around them. That is why Coinbase's tokenized stocks ecosystem is a real use case. 2Factor is on Base and works together with Coinbase to bring Kelly-optimized leverage onchain. BTC markets are live on testnet, and Bitcoin is where the mechanism is being proven, not where it ends. The Points Program, as I understand it: Season 1 is about social activity, education and referrals. Points are called Marks and come from verified actions only. No purchase, deposit or holding earns them. Season 1 ends when 2Factor launches, and the leaderboard freezes. The top ten accounts split 1 BTC, paid in cbBTC, on a fixed rank curve from 18.2% at rank 1 to 1.8% at rank 10. Marks have no cash value, can't be transferred and aren't a claim on any token or asset. Join here: points.2factor.finance/r/289… Not financial advice. If leverage depends on an asset's volatility, which asset would you most want to see structured next?