EasyFi’s On-chain Permissionless Margin Trading Protocol aims to bring scale to the burgeoning DEX based trades
The permissionless and composability ethos of the DeFi space has allowed the creation, listing and trading of the almost 20000 tokens and coins with varying degrees of liquidity, volumes and growth. Leveraged trading, however, has had its share of centralization with over $200 billion worth of margin trades happening on a daily basis on the many centralized exchanges. On DEXs – not so much!
Permissionless markets for leveraged trading have been few and far between and that too with minimal market penetration and depth. What the DeFi market truly needs is enough scale to meet the decentralized margin trade demand that it displays.
Building on the #DoMoreWithDeFi vision at EasyFi, we bring you Electric – a decentralized, permissionless, scalable, secure, leverage trading platform, that enables traders to take out short-term loans to trade margin positions from publicly sourced liquidity on from different AMMs / decentralized exchanges.
This will happen on the EasyFi App where users can conduct margin trades on designated trading pairs in an efficient and secure manner.
Leverage hundreds of tokens on EasyFi’s multichain margin trading product and execute leveraged trades with integrated liquidity from top DEXs like Uniswap, Sushiswap, PancakeSwap, QuickSwap and more on multiple blockchain networks.
– Trades with Liquidity on DEXs – Will connect traders to trade with the most liquid decentralized markets / AMMs. We are exploring a collaboration with every AMM of repute.
– Risk-reward – Separate pools of different asset pairs will be created. This will allow lenders to invest understanding different risk and interest parameters. Lenders can invest based on the calculated risk-reward ratio
– Real-time AMM Price – Collateral ratio with real-time AMM price for any pair available from a DEX.
– On-Demand Oracle – Electric uses price feed oracles from Chainlink integrated into the lending protocol and the ones provided by the DEX to detect the market price and any manipulation whatsoever. This detection forces a price update that makes it trading and liquidation valid.
– UI/UX – EasyFi has been a pioneer in building simple, intuitive and user-friendly products. The interface and experience for Electric has been planned in a similar manner.
Trading Pairs – The trading pairs on Electric will be based on the isolated and independent lending pools that are available on Electric. We will start with a small set of tokens for the margin markets which will include both volatile and stable assets.
Lending Pools – As of now, EasyFi will create all lending pools for Electric. We expect these decisions to be taken over by the community when we launch the EasyFi DAO.
Margin Markets – The margin markets to begin will start with a few pairs as mentioned above. Users who wish to trade on the margin trading markets will essentially have to first deposit a collateral directly on the Electric module.
Margin Interest – Margin interest incurred by leveraged traders is paid out to lenders. Lenders can earn higher yields by depositing assets into the lending pools, earning interest from borrowed assets and also receive other rewards, via some exclusive programs.
DEX Chains – We will essentially be connecting to top AMM / DEXs on Polygon, Ethereum & BNB Chain to begin with and slowly expand to others
Community involvement – The community will eventually own the decision-making process on proposals sent to Electric when the governance process on EasyFi DAO kicks-in. Decisions on lending collaterals, margin trading pairs, default interest rates, risk parameters, will eventually be the community’s prerogative in the long term.
Testnet Launch – The Testnet has been launched – it will enable the users to try and test the module to the hilt and so we can iron out any issues. In the Testnet version, we are opening testing of leveraged trading on MATIC, USDT, DAI & USDC – we will keep adding new trading pairs in due course for testing as well.
Coming up Next
The Electric contracts have been deployed to the Polygon Mumbai Testnet with a connection to QuickSwap Testnet as a DEX integration
Ample time for the community to try and test this protocol before mainnet launch
Partnering with DEXs to integrate with the Electric Protocol
EasyFi Network is a universal layer-2 multi-chain money market protocol for digital assets with focus on liquidity sourcing & capital efficiency for structured lending in a non-custodial manner. The Protocol is currently live on Polygon, Binance Smart Chain and Ethereum.