Upcoming decentralized margin trading protocol OpenLeverage closed an oversubscribed $1.8 million seed investment round, led by Signum Capital and LD Capital. The permissionless leverage trading platform's funding round also saw participation from other notable investors including FBG Capital, Continue Capital and YBB Foundation.
OpenLeverage plans to offer a decentralized finance protocol that allows anybody to launch a leveraged trading market for arbitrary trading pairs with the liquidity provided on decentralized exchanges such as Uniswap.
The permissionless margin trading protocol does not rely on a Chainlink oracle like most of the other DeFi derivative protocols, but instead uses the real-time price from an automated market maker to calculate risk. It also provides risk-isolated lending pools and a two-phase liquidation process to facilitate flexible and secure lending for leveraged trading.
According to the OpenLeverage team, the protocol is expected to launch in August on Ethereum with integration to Uniswap v3. In addition, a layer-two solution with Arbitrum is in development, targeting significantly lower gas costs.
The new funding will go toward the development of a multi-chain ecosystem for the project, which plans to expand to support Ethereum, Binance Smart Chain and other Ethereum Virtual Machine-compatible blockchains, along with new features to support tranche lending, cross-DEX order routing, margin trading with limit orders, and various other use cases in the future.
The permissionless nature of DeFi allows any tokens to be listed and traded with rapid growth in liquidity and volume. However, users today still find permissionless markets difficult to use when looking for leverage trading. Most existing decentralized leverage trading protocols provide only minimal pairs, lack market depth, and cannot scale to meet demand from rapid market development. OpenLeverage will provide a decentralized, permissionless, scalable and secure leveraged trading facility that serves the long tail and fast-growing DeFi market.
OpenLeverage is a permissionless margin trading protocol that enables traders to long or short any trading pair on DEXs efficiently and securely.