OpenLeverage, a permissionless lending and margin trading protocol, announced that it would be deploying its mainnet on Ethereum. The permissionless design of the protocol will allow users to launch a leverage trading market for arbitrary trading pairs, integrating with the liquidity provided on decentralized exchanges.
OpenLeverage has announced that it will retroactively reward the community based on protocol usage to encourage community participation. The reward will be in OpenLeverage’s native $OLE token.
OpenLeverage allows anyone to create a pair of lending pools that supports margin trading for specific pairs on DEXs. It works by introducing OnDemand Oracle, which relies on time-weighted average price (TWAP) provided from DEXs to protect positions from price manipulation and flash loan attacks while enabling lending and margin trading for arbitrary pairs with sufficient liquidity. The lending pools are isolated between markets and further protected with built-in insurance, compensating lenders if insolvency occurs.
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AMM-based DEXs are thriving ecosystems that have offered permissionless spot trading for communities and have been growing steadily, even across non-EVM-compatible chains like SOL. At the same time, hundreds, if not thousands of pairs natively traded on DEXs are still missing support for margin trading and lending. With the introduction of the OpenLeverage protocol, communities will access margin trading and lending support for their token pairs and enhance the trading volume and depth of the liquidity pools on DEXs.
At launch, the OpenLeverage protocol will be deployed on the Ethereum mainnet, integrating with Uniswap V2 and V3. According to the team, “OpenLeverage will soon have multi-chain and layer-2 deployments to BSC, Avalanche, Polygon, Solana via Neon Lab, and Arbitrum, integrating to DEXs, including Pancakeswap, Sushiswap, Trader Joe, along with more options in the future.”
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At press time, over 57,000 unique addresses have accessed OpenLeverage’s Testnet, with over 173,000 transactions processed from 260 markets and more than 36,700 active positions.
Earlier this year, OpenLeverage closed an oversubscribed seed investment round led by Signum Capital and LD Capital. The seed round also saw participation from other notable investors, including FBG Capital, Continue Capital, and YBB Foundation.
OpenLeverage has completed audits with PeckShield and CertiK.
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