Why Lavarage

Trading cryptocurrencies with leverage is a well-established practice, available across a range of both centralized and decentralized platforms, including:

• Margin trading of spot and futures on centralized exchanges (CEXs)

• Leverage for trading perpetual futures on perpetual decentralized exchanges (Perp DEXs)

While we do not claim Lavarage to be superior to existing solutions, it's important to highlight that Lavarage offers distinctive advantages over these other options.

Vs CEXs?

The key difference between Lavarage and centralized exchanges (CEXs) is that Lavarage is fully decentralized. Unlike CEXs, Lavarage is both non-custodial and permissionless.

	Lavarage	CEXs
Permissionless	No sign up or login required, works just like any DeFi platforms Anyone can open a margin liquidity pool for any tokens trading on existing DEXs and once the pool is opened, the tokens can be traded with leverage on Lavarage	Sign up, KYC and login required to use the platform New tokens must be permissioned and listed manually by the CEX team before they can be traded or traded with leverage
Non-custodial	No deposit or pre-funding required Lavarage does not hold or have access to any customer’s fund	Deposit must be made to fund the account before trading can begin Customers have to trust their deposited fund with the exchange

Vs Perp DEXs?

Perpetual decentralized exchanges (“Perp DEXs”) are the closest alternative to Lavarage in the DeFi space. Below are the main differences between Perp DEXs and Lavarage:

	Lavarage	Perp DEXs
Spot vs Perp	Lavarage offers margin trading on SPOT instruments, i.e. you are buying the actual tokens. If you repay the outstanding loan amount on an open position, you can withdraw the tokens from the smart contract that’s holding it into your own wallet. From there you can trade them on any CEXs or DEXs.	When you trade perpetual futures (perps), you don’t buy the tokens. You are just opening a position for a synthetic derivative instrument. There is no way for you to convert the perps into tokens directly and it is unlikely you can move your perp positions from one Perp DEX to another.
Liquidity and price	When you trade on Lavarage, you are always trading on liquidity from existing DEXs and are getting the true market prices.	Since perps are synthetic instruments, they would require a separate market to be formed. This is usually done by market makers. So you are more likely to be trading against professional traders when you trade perps on Perp DEXs and the price you trade the futures at could be quite different from the true price of the underlying token.