OpenLeverage — a permissionless leveraged trading protocol that allows traders or other applications to go long or short any trading pair efficiently and securely on the DEX.
About the OpenLeverage project
The mission of the OpenLeverage protocol - to create a completely decentralized, permissionless margin trading infrastructure. Thus, no permission is required to create a margin trading market for any pair with isolated and market-adapted risk control. In the long term, OpenLeverage aims to create a decentralized cryptocurrency securities service for retail and institutional clients. This will provide decentralized lending, derivatives trading, and asset management infrastructure that integrates with the global DeFi ecosystem.
Why should you trust this project:
| 1 | Margin trading with liquidity on the DEX, allowing traders to trade on the most liquid decentralized markets. Such as Uniswap, PancakeSwap, SushiSwap and others. |
| 2 | With two separate pools for each pair and different risk and interest rate options, risk-isolated loan pools allow lenders to invest, according to their risk-to-reward ratio. |
| 3 | Risk calculation with real time AMM price, margin calculation with real time AMM price for any pair, available on DEX. |
LToken — a token with an interest rate per credit pool, allowing a third party to incentivize their community to provide liquidity to credit pools to support margin trading of their token pairs.
OLE Token — a native protocol token, created as a result of using the protocol and intended to receive protocol rewards and privileges.
Other features of defi app
The OpenLeverage smart contract integrates with external DEXs such as Uniswap to exchange between assets. Every time a trade is made on OpenLeverage, the trade will be executed on the DEX and AMM calculates the entry or exit price in the same way prices are calculated on Uniswap.
Isolated pools with risk parameters, associated with the pair, are required to support the permissionless margin trading market. Each pair has its own collateral ratio, depending on the volatility of the pair, block time and chain bandwidth. The management process may change the collateral ratio for each market to protect the lender in the best interest. The collateral ratio is calculated by adding the collateral value in the loan token and the real-time PnL (Profit and Loss) for a given position and dividing by the notional loan value.