OpenLeverage; DEX Margin Trading Protocol
Leverage trading is a way of trading which investors use to increase their exposure to the market, and allows them to pay less than the amount required for investing in such asset. Consequently, this mechanism of trading allows you to open a trading position using a small amount of capital to take a relatively much bigger position in the market. Traders do not have to pay the full purchase price. Leverage trading is also referred to as margin trading, margin finance, or trading on margin.
Leverage Trading in Decentralised Finance
Decentralised Finance (DeFi) is an encompassing term for many applications and projects in the blockchain space. The protocol that enables the secure functioning of a decentralised digital database is the Distributed Ledger Technology (DLT). DeFi can therefore be described as financial applications built on blockchain technology.
The permissionless process in DeFi is what makes it different from a centralised finance system. Decentralisation is made possible by the DLT. DeFi removes the need for a middle man/broker thereby creating a direct interaction with assets. Leverage trading can be easily found in a centralised exchange (CEX), but it is controlled by the CEX and can also be easily manipulated by them. A decentralised exchange (DEX) running on a smart contract and free of manipulation will indeed be great for trading. It is currently difficult to find a DEX when looking for leverage trading, and the ones with this function provide only minimal trading pairs. Other issues with such DEX include lack of market depth, and they are unable to scale to meet demands from rapid market development. This is where OpenLeverage is needed. OpenLeverage is a permissionless margin trading protocol. This decentralised protocol provides scalable, and secure margin trading facility which functions efficiently in the fast growing DeFi market.
OpenLeverage makes the reality of margin trading in CEX available in DEX by generating long or short positions using leverage gained from community-sourced liquidity pools.
When a token is made available on a DEX, and paired with a stable coin. Anybody within the token community can create margin trading pools for the token pair on OpenLeverage to allow traders borrow against the trading pool and thus create long or short margin positions. Margin trading pool providers are in turn incentivized by gaining yield on their deposited tokens.
Permissionless Open Margin Trading Protocol with Aggregated DEX Liquidity, allowing you to long or short any token pair easily.