OpenLeverage (OLE) – The Most Expected Margin Trading Protocol 2022

The explosion of decentralized finance allows KYC-free trading to grow rapidly in terms of liquidity and volume. A secure, permissionless, scalable, and secure leveraged trading facility that caters to the DeFi market is necessary to completely realize DeFi’s vision of global financial access. Growth that is both quick and long-term. Today, I’ll show you how to use OpenLeverage, an escrow protocol. Let’s find out with GTA research!

What is OpenLeverage (OLE)?

Category

OpenLeverage is a margin trading protocol that allows traders trade any trading pair on the DEX without KYC efficiently and safely.

How OpenLeverage (OLE) Works

Decentralized Margin Trading

Margin trading is a method of trading assets using funds provided by a third party. When compared to regular trading accounts, margin accounts give traders access to a larger amount of capital, allowing them to profit from their advantages Margin trading, in essence, magnifies trading results so that traders can profit more from good deals.

In centralized cryptocurrency markets, borrowed funds are usually provided by an intermediary, such as an exchange or centralized broker. However, in a decentralized cryptocurrency trading environment, funds are typically provided by other anonymous users who earn interest based on market demand for margin funds. Borrowers and transactions will remain anonymous, but they will be visible and adhere to the smart contract’s regulations. All money is held in smart contracts until all requirements are met, at which point they are released to terminate trading positions and lend as needed.

Anyone can create lending pools for a specific pair on the DEX.

Eg:

You are interested in leveraged trading on the FEI/USDC pair, so you can create two lending pools for the Uniswap FEI/USDC pair. Anyone can create separate groups for users to lend or borrow for margin trades.

Next, users can provide liquidity in the FEI → USDC pool, which means lending FEI to buy USDC. Or users can choose to provide liquidity in the USDC → FEI pool i.e. lending USDC to buy FEI. Lenders will receive variable interest rates based on pool usage. This is similar to how the Compound protocol works.

Lenders receive interest in LToken, which can then be staked back to other Yield Farms for additional rewards.

How OpenLeverage works

Traders can choose to borrow from either pool to swap to another token as leverage. In this example, to execute a 2X margin trade, a trader borrows USDC by pledging the same amount of USDC as collateral, swaps to FEI positions with Uniswap liquidity pools, and locks in a smart contract. By leveraging liquidity on the DEX, we don’t have to create separate liquidity or order books for leveraged trading.

10% interest is collected from the pool and 1/3 of the trading fee of this currency pair is used as insurance to compensate the lender if the loan fails to maintain the solvency of the group. Furthermore, each group of loans will have 20% of the accrued interest set aside.

After the trader closes the position, the protocol swaps the FEI position back to USDC by repaying the loan with interest, which returns the deposit plus or minus any gain or loss for traders.

To avoid quick loan attacks, there are restrictions implemented in the protocol design that no opening, closing, or liquidation can be performed in the same transaction. Liquidation occurs in two transactions to avoid attackers manipulating prices, triggering liquidations for profit, or creating cascade liquidation events.

Highlights of OpenLeverage

Features of OpenLeverage

• Traders can trade on margin with liquidity on the DEX, which connects them to the most liquid decentralized marketplaces like Uniswap, Pancakeswap, and others.
• Lending Pools have distinct risks, have two separate pools for each pair, and different risk and rate parameters, allowing lenders to invest in a risk-reward ratio.
• Real-time AMM Risk Calculation, real-time AMM-AMM ratio calculation for any pair available from the DEX.
• 2 Liquidation Phase: To minimize flash lending attacks and cascade liquidation occurrences, liquidation must be completed in two transactions.
• LToken, an interest-bearing token for each lending pool, allows token integration with projects.
• OLE Token, the governance token, is minted using the protocol, allowing holders to vote, staking for rewards and protocol privileges.
• The user interface for decentralized margin trading is quite intuitive and user-friendly.

These features make OpenLeverage the most scalable margin trading protocol:

• Anyone can create lending pools for any trading pair available on the DEX, with default risk and interest rate parameters, which the community can change through the regulatory process.
• Lenders can earn higher yields by depositing assets in the lending pool, earn interest on borrowed assets, get OLE rewards or get rewarded by resetting their LTokens for participating in share programs. rewards from other projects.
• Traders can borrow and trade all with one click in a single trade.
• Projects can integrate with the OpenLeverage protocol to facilitate leveraged trading on specific trading pairs by integrating LToken.
• The liquidator can trigger a liquidation to earn a reward based on the gas price if the trade’s collateral ratio falls below the market cap.

Similar projects

• Dydx
• Perp.finance

Read more about Dydx

Team – Project team

Updating…

Roadmap – Project development roadmap

Q3/2021:

• Launch products on Ethereum
• Integrated Uniswap V2 & V3

Q4/2021:

• Integration with more DEXs, Margin Trading with Aggregated Liquidity
• Layer 2 solution on Arbitrum and Optimist

Q/2022 and the future

• Token Launch
• Loss insurance
• Limit orders for margin trading
• Decentralized asset management
• Yield Farm Altcoin based on leverage
• Leveraged basket trading
• Delta Netual strategy with options

Partners & Investors – Partners and investors

OpenLeverage received $1.8M from investors such as: Signum Capital, LD Capital, FBG Capital, Continue Capital, YBB Foundation, MDEX, AKG Ventures, and Mr. Block

Tokenomics

Token use case

OLE is the project’s governance token, minted using the protocol, allowing holders to vote, staking for rewards and protocol privileges

Fees Treasury: 1/3 of the trading fee of this currency pair is used as insurance to compensate the lender if the loan fails to maintain the solvency of the group.

Boost OLE Earning– Increase OLE income by lending

Fees Discount Higher Leverage – Making Discount Fees Higher Leverage

Information about OLE token

• Token Name: OpenLeverage.
• Ticker: OLE.
• Blockchain: updating…
• Token Standard: ERC -20
• Contract: updating…
• Token Type: Governance.
• Total Supply: 100,000,000 OLE
• Circulating Supply: Updating

Token Allocation

OLE tokens are allocated as follows:

Token Release Schedule

OLE token storage wallet

OLE tokens are stored using an ERC-20 platform wallet.

Exchange OLE

Updating…

Community

Telegram: https://t.me/openleverage

Website: https://twitter.com/OpenLeverage

Twitter: https://twitter.com/OpenLeverage

Conclude

To understand what is outstanding about OpenLeverage compared to other Dex protocols and exchanges, let’s take a look at the comparison table below.

After reading the article and viewing the summary table above, you must have understood somewhat about OpenLeverage.The information in this article comes from the GTA Research team’s research on the OpenLeverage project, and it is not investment advice. We hope that this article has provided you with enough information to make an informed decision about the project. Thank you!

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