EasyFi’s On-chain Permissionless Margin Trading Protocol aims to bring scale to the burgeoning DEX based trades
DeFi has created, listed and traded almost 21,000 tokens and coins, with various levels of liquidity and volume. But leveraged trading is not without its problems. There are over 200 billion margin trades daily happening on the various centralized exchanges. On DEXs – not so much!
There have not been many permissionless markets available for leveraged trading, and even fewer with limited market penetration. The DeFi market needs enough size to satisfy the demand for decentralized margin trading.
Introducing Electric
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.
The EasyFi App will allow users to make margin trades using designated trading pairs. This is a fast and safe way for them to do so.
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.
The Key Features
– Trades with Liquidity on DEXs – Will connect traders to trade with the most liquid decentralized markets / AMMs. Each AMM is a potential partner.
– Risk-reward – Separate pools of different asset pairs will be created. Lenders will be able to understand different interest and risk parameters, which allows them to make investments. The calculated risk-reward ratio allows lenders to invest.
– 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. The price update is made valid for trading or liquidation by this detection.
– UI/UX – EasyFi has been a pioneer in building simple, intuitive and user-friendly products. Electric was similarly designed for its interface and user experience.
Product Vision
Trading Pairs – The trading pairs on Electric will be based on the isolated and independent lending pools that are available on Electric. A small number of tokens will be used to start margin markets. These tokens will contain both volatile assets and more stable ones.
Lending Pools – As of now, EasyFi will create all lending pools for Electric. When the EasyFi DaO launches, we expect that these decisions will be taken over the the community.
Margin Markets – The margin markets to begin will start with a few pairs as mentioned above. To trade in margin trading markets, users will first need to make a deposit directly to the Electric module.
Margin Interest – Margin interest incurred by leveraged traders is paid out to lenders. You can get higher returns by lending assets to the lending pools. Lenders will earn interest on borrowed assets, and other rewards through some special 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.
Up Next
- As a DEX integration, the Electric contracts were deployed to Polygon Mumbai Testnet via a link to QuickSwap Testnet.
- This protocol can be tested by the community in ample time before it is released to mainnet users.
- To integrate the Electric Protocol, partner with DEXs
More Information About EasyFi
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. It is now available on Ethereum and Binance Smart Chain.