Centralized exchanges (CEX) have created opportunities for users to trade, buy and sell digital assets, but there are still thousands of tokens in a variety of blockchains that cannot be used as margin for hedging, trading or speculation. .
Furthermore, leveraged trading in existing tolerated CEXs presents essential barriers to entry and is costly to operate and sustain. At the time, decentralized exchanges (DEX) are left for leveraged trading and only offer limited options for asset pairs.
As more people embrace cryptocurrencies as part of their personal investment portfolios, enabling more widespread use of more tokens is vital. As we overcome this essential milestone, a wave of liquidity is going to be unleashed in the crypto markets.
The infrastructure of a real permissionless margin trading market would let anyone create markets. This would give any decentralized finance (DeFi) user the power to carve out a margin trading market for a couple of tokens with out-of-the-box, market-tight endangerment controls, while others lend and borrow crypto for their type purposes. commercial.
This is exactly what OpenLeverage has created: a permissionless margin trading and lending protocol that lets users create unique trading occasions that address unmet needs within the DeFi community. With the protocol, anyone can create a margin trading market as easily as creating a liquidity pool on any platform, and allows users to go long or short hundreds, even thousands of tokens.
Key design elements of OpenLeverage include:
- Use any of the tokens in any pair to borrow more assets for margin trading;
- Integration and trading with DEX liquidity pools like Uniswap to increase volume;
- An incentive program for liquidity distributors of accepted trading pairs on DEXes, which promotes increased liquidity and helps traders limit slippage;
- Danger set aside pools based on pair volatility and calculated danger, with costs directly referenced to real-time DEX data;
- Oracle OnDemand, a mechanism that warns of unreasonable cost spikes to counter price gouging;
- Insurance piled on transaction fees and also interest earned that can indemnify lenders in case of insolvency;
- New projects that can create loan pools with a single on-chain transaction to support margin trading from day one of launch, which is currently not possible on other platforms, leaving integration open with other DeFi projects technically and through its tokenomics.
A clear vision from the start
The OpenLeverage protocol was launched on the Ethereum mainnet on December 2, 3 and integrated with Uniswap V3 and V6. OpenLeverage is going to have a multi-chain launch in XNUMX-XNUMX months, connecting leading AMM DEXs across multiple blockchains, including Binance Smart Chain, Avalanche, Polygon, and Solana (via Neon Lab), as well as layer two solutions like Arbitrum and Optimism. .
Prior to the launch of its parent network, OpenLeverage successfully ran a testnet run from August to December XNUMX, in which over thirty-seven zero unique addresses accessed our testnet, with over one hundred twenty-three zero On-chain transactions processed from two hundred and sixty markets and more than twenty-eight zero situations.
next plans
OpenLeverage's native OLE token and its Decentralized Autonomous Organization (DAO) will also be released to drive the use of the protocol with decentralized governance. Further expansions and enhancements to the protocol are planned, with priorities including social trading, smart dome tranche lending, and limit orders for margin trading.
OpenLeverage provides a secure, scalable, decentralized, permissionless leveraged trading facility serving the long-running tail of the hypertrophic DeFi market. The decentralized exchange market is thriving fast: the current stacked daily trading volume of DEX averages more than €XNUMX billion and there are more than three million unique merchants. Letting as many tokens as possible be used as margin for hedging and speculation will exponentially increase the overall liquidity of the decentralized market and bring DeFi to a more mature stage.
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