We are excited to announce that OpenLeverage has been launched on Arbitrum One! All associated contract addresses can be found here.
Since its mainnet beta launch in May 2021, Arbitrum One has seen explosive growth as a leading Layer-2 blockchain on Ethereum, enhancing smart contracts and the DeFi space by optimizing transaction speed and scalability with reduced transaction gas costs. Active Ethereum DeFi users have migrated onto Arbitrum, as have many different projects. As more projects come onto Arbitrum, many will be newer projects demonstrating long-tail market landscapes.
OpenLeverage and Arbitrum communities have greatly anticipated this deployment to materialize opportunities within the long-tail market. As the leading Ethereum rollup, Arbitrum has over $2.9B in TVL (https://l2beat.com/scaling/tvl) and is optimal for DeFi adoption but lacks a truly permissionless lending and margin trading protocol. Deploying OpenLeverage on Arbitrum would fill this void and mutually benefit both communities. OpenLeverage is the best protocol to support the long-tail market with upcoming or trending tokens with its permissionless margin trading and lending infrastructure.
Unlike traditional leveraging devices offered by centralized exchanges (CEXs), OpenLeverage allows anyone to create any token pair without permission by accessing depth from DEXs — anyone on Arbitrum can create a margin trading market as easily as creating a liquidity pool on a DEX. No permission will be required to create a margin trading market for any specific pair with isolated and market-adjusted risk controls.
Our deployment will provide more support for long-tail tokens. Users can access more decentralized exchanges such as Uniswap V3, SushiSwap, and more and create any pair with depth, as well as open long or short positions. Arbitrum users will have more support for long-tail tokens they like — $MAGIC, $GNS, $RDNT, $GRAIL, and more.
OpenLeverage has the latest setup and zero fees on major pairs. Through our 1inch integration that connects to top DEXs, the best prices are captured with the lowest fees, ranging from less than 0.04–0.05% and 10–20% in annualized interest for major pairs. This is much lower than other leveraged protocols on Arbitrum that charge users 0.1% in fees plus very high borrowing rates, which may be as much as 50–100% or even more annualized.
Lenders can generate more and higher yields for their majors. OpenLeverage provides higher interest rates than other lending protocols on Arbitrum and enables lenders to earn more yields, generating more alpha for lenders.
Our upcoming permissionless liquidity market will enable Arbitrum borrowers to provide any token as collateral to borrow majors, unleashing liquidity for long-tail token holders to capture more opportunities and help reduce volatility and token selling pressure.
Lenders and traders can benefit from our generous rewards program. Lenders will have zero fees, and traders can lower their trading costs further with rewards while capturing the hype with margin trading on any token pair.
We are deeply integrated within the Arbitrum ecosystem and will connect to many partners to expand our network within the upcoming weeks. We welcome all Arbitrum communities and projects to work and partner with us in enhancing the ecosystem.