Testnet on Polygon Now Live
The creation of more that 20,000 tokens has allowed DEXs to take a substantial market share over CEXs. The margin trading area is where DEXs are still weak. DEXs are unable to compete with centralized exchanges that have more than $200B in daily margin trading volume.
EasyFi is a multi-chain Layer 2 lending protocol that adds value to DeFi. It has announced a new product called “Electric”, that allows DeFi users to be able to carry out margin trades outside the confines of a centralized exchange using its lending protocol.
Lending Strategy Extension
“Electric” is only the latest in EasyFi’s vision of getting DeFi users to #DoMoreWithDeFi. Electric is the next stage in EasyFi’s lending strategy.
These loans will be used to fund margin trading and allow users to get short-term financing. Publicly sourced liquidity is used to fund all of these activities. This liquidity can be found on various automated market makers (AMMs). Through collaborations being investigated by the EasyFi group, electric users will have the ability to trade on the liquidest decentralized exchanges as well as AMMs.
Liquidity pools lenders can make smart investments by receiving a calculated risk/reward ratio. Lenders can understand each asset pair’s risk-reward ratio because they have dedicated pools.
Electric’s user interface is probably the most important. As with any decentralized financial protocol, it is essential to make the user experience seamless. EasyFi’s Electric products share the same user-friendly, simple interfaces.
The Electric Litepaper has also been published to showcase the idea, motivation & concept behind Electric, its workings, a step-by-step guide & some core concepts within EasyFi’s new product for MarginTrading on DEXs.
Here’s What to Expect
The decentralized financial space holds a lot of potential for Electric. EasyFi has laid out some expectations for the users of the product.
Diverse Pairs of Trading
While centralized exchanges are still dominant, traders have the option to select from a wide variety of trading pairs. Different trading pairs will be offered by Electric. They will all be built on independent and isolated lending pools. The initial number of tokens available for testing will be limited. However, as the time passes, they will expand to include volatile and more stable assets.
Margin markets/Interest
Electric requires traders who want to trade margin markets to have collateral. Lenders may also be eligible for high returns if they directly deposit their assets in the lending pools. The interest earned by leveraged traders is a bonus, and lenders will also be eligible for other rewards through special programs.
Loan Pools on Multiple Chains
Electric will offer multi-chain margin trading. It will begin on Polygon and expand to other chains, including BSC.
Community-Centered
Eventually, once Electric goes mainnet and EasyFi launches its DAO, the community will take charge of the decision-making – such as adding new lending collaterals, setting default interest rates, adding new margin trading pairs, and establishing risk parameters and more.
Preparing for take-off
The Polygon Mumbai Testnet has launched Electric. To complete the trading process, it has connected to QuickSwap Testnet. The community will be able to test the protocol prior to it being launched on the mainnet. EasyFi plans to work with DEXs in order to incorporate them into Electric.
Community members are able to test leveraged trading using the Electric testnet version, starting with a test asset, xUSDC. During the testing period, many other blockchains and tokens will be available.