☝️What's that?
Introduction to LeverageX
LeverageX is a revolutionary product designed to disrupt the decentralized finance (DeFi) landscape by offering leverage trading for stocks and other real-world assets. This game-changing platform stands out in the market by providing unique opportunities and benefits for both investors and traders.
Key Benefits of LeverageX
LeverageX offers several key advantages that make it a trailblazer in the DeFi space:
Diversification: Users can access a broader range of assets, including stocks, to create a well-rounded portfolio.
Real Yield: Investors earn real yield through trading fees, ensuring a consistent return on their capital.
Decentralized Security: Complete control and transparency minimize the risks associated with centralized platforms.
How LeverageX Works
LeverageX operates on a simple yet effective model:
Liquidity Provision: Investors provide liquidity to the platform by depositing assets like DFI, JAV, and stablecoins into the LeverageX pool.
Trading: Traders use this liquidity to open leveraged positions. They deposit collateral and place orders to open long or short positions with leverage.
Yield Generation: Trading fees are generated, rewarding investors and JAV token holders with real yield.
Technology Behind LeverageX
The technology powering LeverageX is similar to other decentralized leverage platforms like GMX, Jupiter, and Gains, but with a unique focus on stocks and real-world assets. Here’s a quick comparison:
GMX:
Total Volume: $176 billion
Total Fees: $320 million
Gains:
Total Volume: $71 billion
Total Fees: $40 million
While GMX and Gains primarily focus on cryptocurrencies, indices, and commodities, LeverageX distinguishes itself by offering leverage on stocks, making it unique in the market.
Mechanics of LeverageX
LeverageX has two main participants: liquidity providers (investors) and traders.
For Liquidity Providers:
Deposit assets into the LeverageX pool and receive LP tokens representing their share of the pool.
Earn a share of trading fees and funding rates from traders using the platform.
If a trader’s position is liquidated, the remaining collateral is added to the pool, benefiting the LPs.
For Traders:
Deposit collateral into LeverageX and place orders to open leveraged positions.
Pay trading and borrowing fees, which are added to the pool.
If a trader’s position becomes undercollateralized, it’s liquidated, and the collateral is added to the pool.
Unique Selling Points
A standout feature of LeverageX is leveraging stocks. The platform uses its own Oracle system in combination with DeFiChain’s stock Oracles to ensure accurate and reliable price feeds. LeverageX is multichain ready and will expand to other chains after launching on the DMC. Additionally, the product does not require any other assets to remain stable. If one coin's value decreases, only the collateral ratio is affected, allowing the product to function even in a declining market by enabling bets on assets in any market condition.
Benefits for JAV Holders
LeverageX will significantly impact the DeFi ecosystem by attracting a new user group of traders and crypto investors. This increase in platform usage will lead to more trading fees and consequently more real yield for JAV token holders, creating a win-win situation for everyone involved.
Future Plans
Currently, the team is finalizing the fork code to adapt it to their needs. In the coming weeks, LeverageX will roll out its trade engine on the testnet and simultaneously build the UI to test oracles, trades, liquidation, and other functionalities. After the testing phase, a new collateral system with a liquidity provider token will be integrated.
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