Embarking on a Journey to Maximize Capital Efficiency Across DeFi

OpenLeverage
6 min readJun 12, 2023

We are thrilled to unveil our overarching vision that fuels our drive for innovation and growth: to maximize capital efficiency across the entire DeFi landscape.

This ambitious objective underpins every facet of our existing work and lights the path for our future endeavors. To this end, we've designed a three-phase strategic journey, with each stage bringing us closer to realizing our ultimate goal. Let's delve into these phases.

Phase 1: Laying the Foundation (Completed)

Our foundational phase is centered on building an accessible, comprehensive, and user-friendly platform. Here are the key highlights of what we have achieved for this phase:

  • Margin and Lending services for any token: Our users can maximize their capital efficiency with an array of tradable tokens.
  • Limit Order functionality for all tokens: This feature enables users to set their trading parameters, allowing automatic trade execution once the conditions are met.
  • Over-collateralized borrowing for all tokens: Offering a secure way to leverage their holdings, we allow users to engage in diverse trading strategies.
  • Trade aggregator integration (1inch): Integrating with 1inch, we ensure that our users get the best trading deals across the DeFi ecosystem.
  • Multichain deployment: We've expanded our reach by deploying OpenLeverage on multiple chains.
  • DEXs Integration: By integrating with prominent DEXs, we ensure a seamless trading experience for our users.
  • Optimized transaction fees: We've reduced transaction fees to encourage higher trading volumes and ensure an improved user experience.
  • Launch of OLE Token: The introduction of our native token, OLE, provides users with an opportunity to participate in our ecosystem actively.
  • Implementation of a time-tracked and proven risk control framework: Our comprehensive risk control framework safeguards our users' interests.
  • Introduction of xOLE for LP liquidity boost: We've incentivized liquidity providers with xOLE, ensuring liquidity remains robust on our platform.
  • Establishment of a basic governance framework: Including xOLE voting, Council members, and Ambassadors, we've empowered users to influence the future of OpenLeverage.
  • Rollout of Referral and Invitation Program: This program rewards community members who help us grow by bringing new users to the platform.
  • Multiple security audits and continuous security optimization: Ensuring the security of our users' assets is our top priority, and we continuously work to optimize our security measures.

With the development above, we have delivered a robust permissionless platform with lowest cost to unleash liquidity and enable opportunities for over 600 major and long tail tokens.

Phase 2: Ecosystem Integration and Expansion (Ongoing)

This phase aims to solidify our place within the DeFi landscape and expand our ecosystem for fast growth. Here's what we're working on:

  1. Transition to a fully DAO-controlled protocol: This shift gives our community full control over protocol upgrades, OLE emissions and distribution direction, and future developments. This is key step of development to attract smart money, whales and protocol liquidity.
  2. Upgrade to ve(3,3) style tokenomics: Aiming to improve the balance of supply and demand of OLE tokens, amplifying liquidity on the platform and empowing OLE holders, we will soon introduce veOLE, allowing OLE holders to lock their tokens for different periods. The veOLE holders will then be able to vote on the distribution direction of OLE rewards, receive bribes, share in the protocol’s fees, and boost their yields on lending and positions.
  3. Leveraged liquidity staking (LSDFi): With LSDFi narratives emerged, OpenLeverage is in the good market position to provide leverage LSD solution to maximize profits to up to 10x for stakers.
  4. More ZK/L2 deployments: With the upcoming EIP 4844 upgrade and more zk based layer 2 coming to the market, we're exploring deployments on ZK and L2 chains to unleash liquidity for community and the projects.
  5. Omni-chain Strategy: With cross chain messaging middleware like LayerZero and Socket, we will be able to transform our multichain deployments for omni chain platform to enable trading, lending, borrowing, and staking across multiple chains with a single transaction, facilitating swift capital flow.
  6. Smart vault for improved capital rfficiency: This feature will further optimize capital efficienty within our ecosystem, allow the lenders to maximize yield without the hassle to move the fund around and at the same time stay in the best class of risk control. The borrowers, therefore, will get better liquidity in time when market shift with new opportunities.
  7. Dev community support: To allow other protocol, institutions and pro traders to interact with our protocol programmatically, we will be offering comprehensive resources for developers to build upon our platform, driving further integration and expansion, including SDK, documentations, and further open source on some of tools that our core dev are utilizing.
  8. Tools for transparency: We’re committed to enhancing transparency within our protocol, and will introduce tools and features that make it easier for users to monitor and understand various aspects of the protocol. This may include Dune report with detailed real time statistics, open APIs for automatics data rechieval, and efforts to make our operations more understandable for all users.

Phase 3: Real-World Bridging with OpenStables

To further elevate the platform with the permissionless nature, the final phase aims to bridge DeFi with real-world assets and integrate them into our infrastructure, including a new stablecoins system OpenStables, which allow issuing multiple type of RWA pegged stables, all backed by long tail assets.

Imagine to obtain OUSD, OEUR, OJPY .. backed by ETH, WBTC, stETH, UNI, COMP, BNB, SOL, YFI, DOGE and many many more, with zero slippage swap bewteen these new O prefixed assets.

Backing by Long-Tail Assets
The backbone of the OpenStables system will be the long-tail assets that serve as collateral for issuing stablecoins. These long-tail assets include a wide range of digital assets beyond the top few cryptocurrencies typically used for collateralization. The goal here is to unlock the liquidity potential of these underutilized assets, thus significantly improving the capital efficiency in the DeFi space.

Multiple Stablecoins Pegged to Real-World Assets
Traditional stablecoins are typically pegged to the value of a fiat currency, like the US dollar. OpenStables expands on this concept, enabling the issuance of multiple types of stablecoins pegged to various real-world assets. This could include not just different fiat currencies but other types of assets such as commodities, indices, or other forms of value storage.

This innovation opens up a multitude of new opportunities in the DeFi space. Users around the world will be able to interact with a diverse set of stablecoins and RWAs that represent their local currencies or other familiar assets, leading to a more inclusive and versatile DeFi ecosystem.

Seamless Integration with Existing Infrastructure
For the OpenStables system to function efficiently, it will be integrated seamlessly with our existing infrastructure. This integration will ensure that the system runs smoothly and securely, and most importantly create a much bigger DeFi landscape and opportutnies, improving OLE token utility, empowering OLE holders and improve platform revenue.

Collaboration and Product Expansion
The OpenStables system will not only offer an innovative stablecoin solution, but also open the door for product collaboration and expansion. As new stablecoins are introduced, they can be incorporated into existing DeFi protocols and ecosystem. This creates opportunities for new products, partnerships, and ways of leveraging these stablecoins within the larger DeFi ecosystem.

In conclusion, OpenStables represents a major step forward in our ongoing mission to maximize capital efficiency across DeFi. We’re excited to see how this innovation will enhance the DeFi landscape and contribute to the growth and evolution of OpenLeverage.

Take Steps Forward

With Phase 1 completed and Phase 2 already underway, we're eager to continue this journey with our community. We're excited to take on the challenges ahead, push the boundaries of what's possible in DeFi, and deliver on our promise of a truly open, democratized, and efficient financial future. Thank you for your unwavering support. Together, we will redefine the possibilities of DeFi.

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