The permission-free nature of decentralized finance allows any token to be listed and traded with rapid growth in liquidity and trading volume. But today’s users still struggle to find unlicensed markets when looking for leveraged trading. Centralized exchanges are under tremendous regulatory pressure, and due to their self-centered business model, it is costly to establish any market. Existing leveraged decentralized trading arrangements provide only minimal currency pairs and market depth, and cannot be expanded to meet the needs of rapid market development. To truly build DeFi’s global financial access vision, a decentralized, permissionless, scalable, and secure leveraged trading tool is needed to serve the fast-growing, long-tail DeFi market. Introduction to
OpenLeverage is a permissionless margin trading protocol, which allows traders to efficiently and safely go long or short any trading pair on DEX. The mission of the OpenLeverage
protocol is to create a completely decentralized permissionless margin trading infrastructure. Therefore, a margin trading market can be created for any currency pair without permission. This is the position of the development team in the design of the protocol.
DEX margin trading liquidity, connecting with uniswap, Pancakeswap and other decentralized markets with the strongest liquidity for trading.
Groups of loans with risk isolation, each pair has two independent groups, each group has different parameters of risk and interest rate, which allows lenders to invest according to the risk-return ratio.
Risk calculation with a real-time AMM price, uses real-time AMM prices to calculate the collateral ratio of any available currency pair on the DEX.
Two-stage settlement, mandatory settlement is completed in two different transactions to avoid sudden loan attacks and cascading settlement incidents.
LToken is the interest rate token of each loan group, allowing the integration of the token economy and the project. The
OLE token, a governance token, is coined by protocol, allowing holders to vote or commit to protocol rewards and privileges.
An intuitive and easy-to-use user interface designed for decentralized margin trading.
These features make OpenLeverage the most scalable margin trading protocol:
Anyone can create a loan pool for any trading pair available on the DEX, with predetermined interest rates and risk parameters, and the community can change these parameters through process governance.
Lenders can obtain higher returns by depositing assets in the loan pool, earning interest on borrowed assets, obtaining OLE rewards, or by resetting their LToken to join other project reward programs.
merchants lend and trade with one click. The
project can be integrated with the OpenLeverage protocol to facilitate leveraged transactions for specific trading pairs by integrating LToken. If the transaction mortgage ratio is less than the market cap, the
liquidator can trigger the liquidation to win prizes based on the price of gas.
OpenLeverage is a decentralized trading margin and credit protocol, specially built for EVM-compliant blockchains.
Anyone can create a loan pool for a specific currency pair on the DEX. For example, someone might be interested in trading leveraged on the FEI / USDC pair, so they created two loan pools for the FEI / USDC uniswap pair.
Anyone can create an isolated pool for users to borrow or loan margin operations.
Then the user can provide liquidity in the FEI→USDC group, that is, provide FEI to borrow to buy USDC. Or users can choose to provide liquidity in the USDC → FEI pool. The lender will receive variable interest based on the usage of the fund pool. This is similar to how a composite protocol works.
The lender receives LToken from the pool as an interest-bearing token, which can then be redistributed to other income farms for further rewards.
Traders can choose to borrow from any pool in exchange for another token as a leveraged position. In this example, the trader uses the same amount of USDC as collateral to borrow USDC for a double margin transaction, trades with the Uniswap liquidity pool to FEI positions, and locks the smart contract. By taking advantage of the liquidity of DEX, we do not have to create a separate liquidity or order book for leveraged transactions.
Once the trader closes the position, the deal exchanges the FEI position back to USDC by repaying the interest on the loan, which returns the deposit plus or minus any profit or loss to the trader. Intuitive user interface designed by
Real-time pricing isolates risks
All asset pairs naturally experience different volatility. In order to support the unlicensed margin trading market, an isolated group with risk parameters related to currency pairs is required. According to the volatility of the currency pair, the lock time and the performance of the chain, each currency pair has its own mortgage ratio. The agreement can support transactions with leverage from 1.5 times to 10 times.
uses the real-time price of the model on the AMM chain as a reference for risk calculation and settlement. Compared with waiting to create a Chainlink oracle or update market data, this is important for expanding and accelerating the leveraged trading market in a decentralized environment. As Vitalik suggests, DEX pricing provides local data held on the chain, protected by a technical and inexpensive design, and is a de facto oracle for more DeFi use cases (such as margin trading).
To prevent flash loan attacks, some restrictions have been implemented in the protocol design:
You cannot open, close or delete positions in the same transaction.
The liquidation operation occurred in two transactions to prevent the attacker from manipulating the price and triggering the liquidation to make a profit or create a cascading liquidation event.
Additionally, if the loan cannot maintain the solvency of the pool, 1/3 of the transaction cost is reserved as insurance to compensate the lender.
Please note that OLE tokens will not be released in the next phase.
OLE tokens are government tokens that allow users to vote and participate in obtaining rewards and other protocol privileges. Users can mine OLE through the process of borrowing, lending, liquidating positions farming or inviting friends to join the protocol.
We believe in the power of community, so we set aside 70% of all OLE tokens for community mining, with the remaining 30% retained by the development team and project investors on a long-term vesting schedule.
Before the OLE token launch, the tokenomics will be fully disclosed in an Initial DEX Offering (IDO). To stay up to speed on future events, please check the information below on how to Join Us.
To learn more about OpenLeverage:
Chat with us on Discord — the preferred way to reach our team
Follow @OpenLeverage on Twitter
Join our Telegram group
If you are interested in integrating with OpenLeverage or joining us to work on open finance as a Community Manager or Blockchain Developer, please email us at email@example.com. We are looking forward to hearing from you.