On Monday, May 16th, the global marketing manager of OpenLeverage joined an AMA with SafePal to field questions from the community, sharing lots of great information about the OpenLeverage and the upcoming launch.
This blog’s gathered up all of the questions and answers here, just in case you missed anything.
🎤FIRST SEGMENT: Fireside Chat🎤
I: Good Day! SafePal Fam @everyone! This time we have @Rachel | OpenLev from OpenLeverage!
Welcome Rachel to the SafePal Community!
R: Hi SafePal fam!
Nice to meet you here!
I: Before we start with AMA — Can you please give a small introduction about yourself? 😀
I’m Rachel, and I have been OpenLeverage’s global marketing manager since early 2021. I came from a traditional finance background and started my crypto life back in 2018. I have been working with start-ups and scale-ups in the fintech and venture fields for the past few years.
I: Welcome again!! Let’s get started with a few questions before jumping on to the Discord questions.
Q1: Can you tell us more about OpenLeverage?
R: OpenLeverage is a permissionless margin trading protocol with aggregated DEX Liquidity, enabling traders to long or short any trading pair on DEXs efficiently and securely.
It allows anyone to create lending pools and margin trading markets, offer funds to borrow, and connect to the decentralized exchange to serve the unsatisfied market.
I: As a new follower of OpenLeverage, I can’t stop getting interested in OpenLeverag when I’m surfing their APP/Website.
I think people are also interested in knowing more about the OpenLeverage. So here comes our second question:
Q2: What’s OpenLeverage’s mission/goal?
R: Our mission is to create an entirely permissionless decentralized margin trading infrastructure – no permission is necessary to create a margin trading market for any pair, with isolated and market-adjusted risk controls.
In the future, we want to build a decentralized crypto securities service for retail and institutional clients, providing decentralized lending, derivatives trading, and asset management infrastructure, integrating with the global DeFi ecosystem.
We believe that the transition to a native financial layer on the internet is an essential and inevitable route for DeFi. It is free, frictionless, and not controlled by anyone.
I: I think the DeFi is much more than just the asset staking we’re experiencing. It seems that OpenLeverage is bringing more possibilities to the users.
And I’m becoming so curious about the ‘no permission is necessary to create a margin trading market for any pair, with isolated and market-adjusted risk controls’ you said.
Q3: Who can create a new leveraged trading pair?
R: At OpenLeverage, we believe that market creation shouldn’t require approval or review from any person or institution.
Any account with a decentralized wallet address can create a new trading pair between the tokens. It must be the same pair that already exists on the DEX. If the pair isn’t found, the user needs to first create the pair on the DEX before creating the market on OpenLeverage.
I believe that when you talk about this feature, there are a lot of users who have already raised strong interest in it. Besides this,
Q4 : What are the competitive advantages of OpenLeverage?
R: Good question Ivy.
OpenLeverage is a permissionless money market designed for margin trading, with an open technical and economic structure integrating with the global DeFi ecosystem.
Imagine creating any margin trading market – it’s like creating a pair on Uniswap. That’s what we’re building. I think that’s unique in the current market and something a lot of users have been waiting for.
To achieve that, we put together a protocol design with:
- Risk isolated lending pools to segregate risk between volatile markets;
- Risk calculation with a TWAP based OnDemand price oracle to protect our users from price manipulation;
- LToken to allow the third-party projects to incentive their community to provide lending liquidity;
- Tokenomics to incentive protocol usages and governance.
It has a very intuitive and user-friendly UI for the community to understand the market and their own position.
I: These features excite me!!!
A few hours before, the SafePal and OpenLeverage’s partnership announcement was published, and many community members were excited about the potential cooperation between them in the near future.
Q5: What made you decide to cooperate with SafePal?
R: It’s definitely a privilege for us to cooperate with SafePal I have to say, SafePal has the best hard wallet, you can find in the crypto market, we have to admit!
Personally, I think working with SafePal would not only share with SafePal wallet holders about OpenLeverage and allow users to easily long or short any tokens on dexs.
It’s really an honor to brew with SafePal together, and thank you guys for inviting me as a guest today!
🎤SECOND SEGMENT: Community AMA🎤
I: 🥰 Thank you Rachel for supporting SafePal!!
Looking forward to hearing the good news soon.
And on that note. Let’s hear it from our community.
Kindly select 5 questions from the thread SafePal x OpenLeverage and answer them!
You can copy the URL of the questions and paste them here before you answer.
R: let’s go for it.
Wow, these are such great questions! Thank you all so much.
I’m going to cherry-pick a bit, but let’s start at the top.
1. Can you give an overview of your Tokenomics, and the UTILITY of Token?
A: Firstly, I need to highlight that there’s no $OLE token sale yet, so please stay tuned to our official social channels. Add us on Discord, and Twitter to stay updated.
We have a dual-token tokenomics design: $OLE is the native token that incentivizes protocol usage, such as lending, trading, facilitating liquidations, and staking. Holders of $OLE tokens are encouraged to lock $OLE into time-weighted vote escrow in exchange for xOLE tokens.
xOLE holders have the power to vote or submit proposals in the OpenLeverage DAO governance process, boost earnings on incentivized lending pools, and have discounted fees on margin trades.
Learn more from our blog post.
2. Have you been audited? Have not heard you talk about that security of funds is what every investor craves and plans to escape in case of insecurity if funds, scams, and rug pull? How strongly built is your security put in place?
A: Security has been our top priority throughout our product and technical design.
It’s always a challenge to be completely open and safe at the same time. We finely define the boundary of risk and liquidity and trading flow so we can have an open, safe, and good user experience at the same time.
We followed secure development best practices throughout its development. Our security review process includes a full-length audit from Certik and Peckshield. Check it out: https://github.com/OpenLeverageDev/openleverage-contracts/tree/main/audits
We partnered with Code4rena for a 1-week audit contest to finer-tuned security settings and gas optimization.
Read more: https://medium.com/code-423n4/the-ones-in-the-arena-openleverage-661e219cc58.
3. Maximum OpenLeverage currently is 5x. Do you have a plan to increase leverage in the future?
A: It’s very possible. We’re looking at how the current system can react to extreme market conditions and OpenLeverage has gone through 4-5 months without issues on timely liquidating position or with protecting lenders’ and principals’ interests. We can potentially increase the leverage in the future where appropriate.
Users can focus assets with soft-depegs where you can potentially capture arbitrage opportunities by leveraging or shorting.
Difficulty in doing this dependant on the performance of the blockchain.
How long the blockchain time is – how fast can react to market conditions on time and block size – how many transactions can the blockchain accommodate
Having high leverage means that faster response time to market.
The difficulty is not on us, but on the blockchain and how fast it can react to it.
4. Does OpenLeverage have any plans to join WHO Safepal? We know this program is very good for promotion @Rachel | OpenLev ❤️❤️
A: Of course, we have a plan to join the WHO.
5: Why do you choose to launch a margin trading protocol on DEX? @Rachel | OpenLev
A: There are a few reasons why we decided to launch a margin trading protocol on DEX.
-DEXs have made a huge difference: there are many pairs are on DEXs with lots of liquidity and volume.
-Existing centralized exchanges and decentralized protocols are permissioned markets with substantial entry barriers and are costly, providing minimal pairs and market depth.
– We are here to enable all tokens to be margin traded. Compared to other leveraged trading protocols that provide 20-30 mainstream pairs supported by a traditional order book model, we aim to support thousands of pairs across many DEX and blockchains and help projects and DEX improve volume and liquidity by providing lending and margin trading support.
🎤Third SEGMENT: Quiz🎤
I: 👏Thank you so much for such intriguing answers so far!
And I think the community will become so excited to know the information from you.
And coming is the final part: the quiz.
The community has 5 minutes to answer the quiz. The first 10 participants getting the full score of the quiz will be winners of this section.
🚀 Thank you @Rachel | OpenLev for being such an amazing guest 🤝 Thank you so much for your time.
R: The good news is that OpenLeverage has been selected into the Binance Labs Incubation Program Season 4.
Thank you, guys! Enjoy the rest of your day!
I: Find out more about OpenLeverage at:
Official Website – https://openleverage.finance/
Telegram – https://t.me/openleverage
Discord – http://discord.gg/openleverage
Twitter – https://twitter.com/OpenLeverage
Reddit – https://reddit.com/r/OpenLeverage
Medium – https://medium.com/@OpenLeverage
Github – https://github.com/OpenLeverageDev/openleverage-contracts