Do we need a new pool for the leveraged tokens?

With the discussion about the mining rewards and the new FRAX pool, I was just wondering whether there is a real technical need for a new pool for the leveraged tokens. What I mean is that the two existing pools are fine for various options, ie we just need pools with FNX and stablecoins, not pools for specific option types.

I’m really looking forward to the leveraged tokens and I think/believe that they can attract a lot of attention. If there is a chance to have common pools for options and leveraged tokens, it would be nice for the current LPs that are locked for a long long time (otherwise there would be another rewards drop) but it would also be less confusing.

But it’s quite likely it is just not possible to have a common pool due to technical reasons. I just wanted to ask as these are still being developed.

There are several reasons to design pools separate from the current options pools:

  1. The mechanism behind the leveraged tokens is very different from options. The borrowing and lending from the leveraged token pools need to be actually processed and then transferred into the relating coins, rather than just sitting there as collateral as in options. If we combine the pools, it is possible but will make the contracts extremely complicated. The gas cost will be very high and it may lead to some other unforeseeable problems.
  2. The risk-return profile in the leveraged token pool is somehow like borrowing and lending, while in the options pool, it will be totally different. It is not wise to mix the two models together within the same pool and the risk-return will be very hard to explain to the users.
  3. The leveraged token pools will use different underlying assets. Like the ETH leveraged tokens, ETH long pools will need to borrow stable coins and buy more ETH, hence stable coin pools are needed, vice versa, while ETH short pools will need to borrow ETH and sell for stable coins, hence ETH pool will be needed. It will be hard to mix these pools.

Ok, thank you for the answer.