Protocol
Lavarage is a decentralized non-custodial margin liquidity protocol. It is designed to work on top of existing trading liquidity on decentralized exchanges. It is like a money market platform built specifically for the purpose of making DeFi trading more capital efficient for traders.
Three Components
Lending - lenders create lending pool(s) and for each pool, they can create multiple loan offers which specify the loan terms, e.g. interest rate, maximum open LTV, maximum exposure, etc for different tokens
Staking - stakers stake liquidity into lending pool(s) to earn yield
Trading - traders borrow liquidity from lending pool(s) to do margin trading on DEXs. When a margin spot long position is opened, the purchased tokens are locked in a smart contract and are used as the collateral.
While the protocol is permissionless, only staking and trading are made available to users on our dApp platform. Lending will be made available in future versions.
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