In this article, we’ll discuss information about the Lever Network project and LEV token
Since exploding in 2020, Decentralized Finance (or DeFi) has been gaining great attention and popularity, which can often be seen in mainstream media’s headlines. With the exponential growth, DeFi has recorded a total value locked (TVL) of $41.29 Billion with lending and DEX products taking up almost 90%. (via DeFi Pulse)
Lending and trading are two of the pillar businesses in the current DeFi space with the most TVL. However, they are practically isolated from each other, leading to extremely low capital efficiency. Rare lending protocols support sport or even margin trading and most DEXes don’t provide loans. Also, even though users get transferable and tradable deposit certificates after depositing in lending protocols, there are few platforms to actually facilitate the financial use of them.
Therefore, Lever is developed to bridge the gap between lending protocols and DEXes, increasing capital efficiency in DeFi.
Lever is essentially an open-source margin trading platform where you can lend, borrow and perform leveraged trading to either buy long/sell short an asset in just one place.
For lenders/borrowers, you can lend your idle crypto assets (including your deposit certificates from other lending protocols) to earn interest or use them as collateral to take out loans.
And 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. The platform makes use of external AMMs like Uniswap to provide surplus liquidity for margin traders to open positions of any size.
Using Lever, you can comfortably leverage your available capital for larger gains.
Key features of Lever are explained as follow:
Efficient Asset Utilization: On Lever users can lend their idle crypto assets to others and enjoy higher interest rates.
Quick and convenient trading experience: Borrowing and trading are seamlessly integrated within Lever. Traders can easily open a long or short position in just one step. In the future version of Lever, Market Order, Limit Order and Stop Order will also be supported.
Enormous liquidity: Relying on AMMs like Uniswap, Sushiswap, Pancakeswap, and 1inch, Lever is able to provide deep liquidity for your trade. Also, it is able to effectively reduce the slippage when opening or closing large positions.
Much more tokens can be shorted: In addition to WBTC and ETH, more DEFI and ERC20 assets like SNX, UNI and AAVE can be shorted. Lever also offers a visualized operation interface for position management.
More collateral options for loans: Outside of common native tokens like ETH, DAI and USDC, Lever allows users to take out loans by using deposit certificates from other lending protocols, such as aTokens from Aave and cTokens from Compound.
As mentioned above, according to our observation, the problems in DeFi mainly lays in the following aspects:
1. Buy long or sell short certain assets with leverage.
Users are mainly borrowing for unexpected expenses, leveraging their holdings or for new investment opportunities.
For instance, if you are long holding asset A and are bullish on asset B, in this case, you can deposit your asset A in Lever as collateral and borrow a stablecoin like USDT or DAI with or without leverage depending on your preference, then swap it to asset B. Once both prices go up, your gains will be amplified.
2. Earn more passive incomes.
Other than receiving interest on your deposit, you can earn LEV token rewards through Lever’s liquidity mining program.
Here is a guide to margin trading on Lever:
1. Deposit: First you need to deposit any supported asset in Lever. The platform supports various assets to be used as collateral, which can start earning interest after depositing.
2. Margin: After depositing, simply head to the “Margin” section and click on “Sell（Short）”/“Buy（Long）” for the asset pair you want to trade.
3. Opening a Position: Set the amount you need based on your available deposit that would be used as collateral for the loan. Then select the leverage ratio, the system will automatically convert the maximum amount that can be used for this trade.
The advantages of Lever over CEXes are as follow:
Similar to Lever, dYdX is also a decentralized exchange offering margin trading. Here is a competitive analysis of the two.
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LEV token is now live on the Ethereum mainnet and Binance mainnet. The token address for LEV is 0xbc194e6f748a222754c3e8b9946922c09e7d4e91. Be cautious not to purchase any other token with a smart contract different from this one (as this can be easily faked). We strongly advise to be vigilant and stay safe throughout the launch. Don’t let the excitement get the best of you.
Just be sure you have enough ETH or BNB in your wallet to cover the transaction fees.
You will have to first buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance (BNB)…
We will use Binance Exchange here as it is one of the largest crypto exchanges that accept fiat deposits.
Once you finished the KYC process. You will be asked to add a payment method. Here you can either choose to provide a credit/debit card or use a bank transfer, and buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance (BNB)…
Step by Step Guide : What is Binance | How to Create an account on Binance (Updated 2021)
You need a wallet address to Connect to Uniswap or Pancakeswap Decentralized Exchange, we use Metamask wallet
If you don’t have a Metamask wallet, read this article and follow the steps
Transfer $ETH to your new Metamask wallet from your existing wallet
Connect Metamask wallet to Uniswap or Pancakeswap Decentralized Exchange and Buy, Swap LEV token
The top exchange for trading in LEV token is currently Uniswap, Pancakeswap
There are a few popular crypto exchanges where they have decent daily trading volumes and a huge user base. This will ensure you will be able to sell your coins at any time and the fees will usually be lower. It is suggested that you also register on these exchanges since once LEV gets listed there it will attract a large amount of trading volumes from the users there, that means you will be having some great trading opportunities!
Top exchanges for token-coin trading. Follow instructions and make unlimited money
Find more information LEV
🔺DISCLAIMER: The Information in the post isn’t financial advice, is intended FOR GENERAL INFORMATION PURPOSES ONLY. Trading Cryptocurrency is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money.
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