OpenLeverage Launches Permissionless Liquidity Market

OpenLeverage
4 min readMar 28, 2023

We have recently launched our new permissionless liquidity market feature that offers all users more freedom to deposit any crypto asset as collateral and borrow, unleashing liquidity and providing greater flexibility in the market.

Borrow with Thousands of Assets

Most lending protocols, like AAVE and Compound, have limited token support for deposits and borrowing, leaving over 99% of tokens without access to these activities. OpenLeverage breaks this limitation by allowing any user to create a lending marketplace for any token pair. This enables users to put both tokens of the pairs as collateral and borrow against other tokens. Users can even deposit altcoins as collateral and borrow majors.

You Can Borrow More

One of the significant advantages of OpenLeverage is that it enables users to borrow more with the same collateral provided than other platforms. For instance, on Venus, depositing $1,000 worth of BNB enables the borrower to access $600 in USDT, but with OpenLeverage, for the same value of BNB, you can borrow $640 in USDT.

Earn While Borrowing

Experience a new level of opportunity with our third-party rewards and Genesis Permissionless Liquidity Market Campaign. By participating, borrowers can receive rewards not only from our partners but also from projects offering token rewards for over-collateralized borrowing pairs.

Additionally, OpenLeverage will offer rewards to users to encourage them to use the lending feature. Lenders will receive interest provided by borrowers and OLE rewards from OpenLeverage. APY incentives can be viewed on the OpenLeverage page, providing transparency to users.

OpenLeverage’s competitive rates and rewards make it a compelling option for users looking to participate in the Permissionless Liquidity Market.

Limitless Opportunities for Users

OpenLeverage introduces even more opportunities for users that sets it apart from other lending protocols:

  1. Unleash Your Altcoin Holdings: OpenLeverage’s over-collateralized borrowing allows users to obtain additional funds using their existing token holdings as collateral. This enables them to diversify their portfolio and invest in a wider range of tokens, spreading risk and optimizing potential returns.
  2. Farm/LP Without the Price Impact: By borrowing risky assets with stables, users can provide liquidity to various pools and farms in other DeFi platforms, earning alpha and additional rewards without having to expose to price volatility.
  3. Borrow Instead of Swapping: Users can borrow tokens of their choice to take advantage of arbitrage opportunities without having to pay for the cost of fees, slippage, or price movement. Instead, users only need to pay a small amount of borrowing interest.
  4. Risk Management: Over-collateralized borrowing allows users to hedge their positions by borrowing tokens that are inversely correlated with their current holdings. This helps to mitigate potential losses in case of market volatility.

Providing Support for Projects

OpenLeverage supports projects and communities by providing them with the tools and resources they need to succeed in today’s dynamic crypto landscape. Our over-collateralized borrowing feature empowers them to take control of their token economics, enabling them to thrive in a highly competitive market:

  1. Reducing Selling Pressure: Over-collateralized borrowing allows communities to access liquidity without having to sell their assets, which helps to reduce selling pressure in the market.
  2. Enhancing LP Liquidity: Over-collateralized borrowing with project tokens can help the community borrow project tokens or majors to provide liquidity on DEX, creating a deeper depth of liquidity that can lead to higher trading volumes and better price discovery for the project’s token.
  3. Improved Tokenomics: As more users engage in borrowing and lending activities involving a project’s token, the demand for the token may increase, potentially boosting its value. This can positively impact the project’s tokenomics, making it more attractive to investors and users alike.
  4. Access to Capital: Projects can leverage their native tokens as collateral to secure funding through over-collateralized borrowing. This provides an alternative financing option to traditional fundraising methods, such as initial coin offerings (ICOs) or venture capital, with more flexible terms and fewer restrictions.

Enabled by Risk-Isolated Pools

OpenLeverage is committed to providing a secure and transparent platform for its users. Our risk-isolated pools, governed by time-weighted average price (TWAP) and On-Demand Oracle, prevent price manipulation in the permissionless market and enable real-time, on-chain risk calculation based on updated trading interest. By risk-isolating all over-collateralized lending and borrowing token pools, we reduce the risk of position penetration, safeguarding the interests of our users. We prioritize security and transparency, implementing robust measures to ensure that OpenLeverage remains a trusted platform for all users.

Security Comes First

Our development team and third-party auditors have invested a great deal of effort and resources in creating a secure protocol, and our audit reports can be found here.

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