What Is LEVER and How to User It?

2021-05-21 01:00:00 · 394 views · 3 min read

 

 

Lending and trading are the two areas in the current DeFi space with the most TVL. However, they are practically isolated from each other. Rare lending protocols support spot or even margin trading, and most DEXs don’t provide loans. Also, few platforms actually facilitate financial use. 

 

 

Lever is the first AMM-based decentralized margin trading platform on Ethereum and Binance Smart Chain, where users can easily earn interest through lending and perform leveraged trading. So basically, you can lend, borrow and perform leveraged trading to either buy long/sell short an asset in just one place.

(Source: Lever Official Medium)

 

 

How to use it?

 

For lenders/borrowers: You can lend your crypto assets, including your LP tokens, to earn interest or use them as collateral to take out loans, which will greatly lift your capital efficiency.

 

 

For traders: After making a margin deposit in the margin pool, you will be able to open either long or short positions in a supported asset in Lever with up to 3x leverage. Lever relies on AMMs like Uniswap to provide deep liquidity for your trade.

In Lever’s market, you can deposit your tokens into Lever’s lending pool, or open a position for a token (which means to buy/long or sell/short it). 

As for the margin in Lever, it’s very convenient. For example, you can directly borrow USDT and buy ETH with it. You will be rewarded with $LEV, Lever’s utility token, for your trading.

 

 

And recently, the $LEV Single Staking Pool has been live. 

During the 30-day duration, 100K $LEV will be distributed on Ethereum while another 100K distributed on BSC. You can stake your $LEV and your reward will be calculated based on your proportion in the pool in real-time.

 

 

If you’re investing in $LEV, it’s necessary to track Lever’s on-chain data dashboard.

You can see from the graph above that the $LEV price has a high correlation to the Lever’s users and transactions.


 

 

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