What is LeverFi?
Permissionless on-chain leveraged trading powered by smart contracts.
Illustration of how LeverFi connects Traders with Lenders for leveraged trading.
- Traders deposit collateral such as BTC, ETH, Curve-LP, Uni-LP and more to trade changes in asset prices at up to 10x leverage.
- Collateral are deposited to farming protocols, allowing traders to earn yields and leverage trade at the same time.
- By depositing funds into Lending Pools, Lenders earn interest from Traders who borrow to leverage trade.
- Interest rates are dynamic based on a utilization curve. The higher the asset utilization, the higher the interest rate.
- Open trade positions are executed, stored and settled internally within the LeverFi platform only. Traders do not have direct access to the trading assets, and can only withdraw trading profits.
- LeverFi route trades through multiple DEXs for optimized asset pricings, allowing Traders to execute chunky trades with minimized slippages.
- A liquidator system is in place to margin call Traders if trading losses approach the value of collateral deposited.