The mission of the OpenLeverage protocol - to create a completely decentralized, permissionless margin trading infrastructure. Therefore, no permission is required to create a margin trading market for any pair with isolated and market-adjusted risk control.
About the OpenLeverage project
In the long term, OpenLeverage aims to build a decentralized cryptocurrency securities service for retail and institutional clients by providing decentralized lending, derivatives trading and asset management infrastructure that integrates with the global DeFi ecosystem.
With OpenLeverage, you can leverage your idle digital assets by adding them to the liquidity pool and earning interest. The interest you earn depends on how much liquidity (supply and demand for digital assets) is present in the pool at any given time.
Unique benefits:
| 1 | Anyone can create credit pools for any trading pair, available on the DEX, with default interest rate and risk options that the community can change during the management process. |
| 2 | Lenders can earn higher returns by contributing assets to credit pools, earning interest on borrowed assets, earning OLE rewards. |
| 3 | Projects can integrate with OpenLeverage to facilitate leveraged trading on certain trading pairs by integrating LToken. |
Any account with a decentralized wallet address can create a new credit pool of trading pairs between tokens if the pair exists on the DEX. If the pair does not exist, the user needs to create a pair on the DEX before creating a market.
Anyone can invoke a smart contract to force liquidate an under-margined position. The forced liquidation position will be traced back to pledged assets on the DEX and returned to creditors.
Interest rate features
OpenLeverage uses a dynamic interest rate model. The interest rate fluctuates depending on the ratio between the total number of tokens, provided by lenders, and the total demand from traders. When the amount of assets in the credit pool is less, the interest rate can increase, so the lender who provides it can receive more interest. On the contrary, when there are enough credit assets, the interest rate will decrease.