How OpenLeverage is building permissionless DeFi margin trading

0:01i'm ashton addison from block west capital for investment pitch media in the Crypto Coin Show and today on blockchain interviews we have jackie and ben the co-founder and marketing director of open leverage gentlemen welcome to the show and thank you for taking the time to come on hey thanks for having us glad to be here pleasure you're very welcome

0:20there's so much going on in d5 more on the deck side more different kind of derivatives margins liquidity providing we can get in different kind of financial products are being built and i've looked through open leverage i've seen that you guys have a cool range of products that i think are going to become wildly popular in the near future if not already really

0:43and i would love for you jackie to just kick us off by starting with you know a bit of an explanation on what is open leverage and the solutions that you're bringing to the cryptocurrency space sure so open average is a permissionless lending and margin trading protocol to enable trader to long or short any tokens on decentralized exchange efficiently and securely

1:08so it means anyone can create lending and money trading markets which connects to the am based access like like unit swap and trade with the liquidity provided from the taxes the protocol can also be deployed to all other evm compatible chains like avalanche polygon bse and phantoms and supporting thousands of tokens for lending and money trading in the future

1:33very cool and yeah that's great to hear about the other chains as well i think that there's a lot of demand coming in especially with the bottleneck on ethereum and the costs associated for small traders when you were building open leverage were you looking at these decentralized exchanges like uniswap and being like what is missing how can we improve this

1:53or like where did you find the idea that this was needed in the market so i think when we look at the markets like about a year ago when we started projects we realized that the dax is growing really fast with a lot of tokens to be listed with very small calls with transactions then a lot of projects can list their project they list the token on taxes

2:20but we cannot find any similar infrastructure to support landing and modern trading with that level of permission list so that's why the reason that we came came up this idea to build a permission is and truly kind of opens market for lending and monetary for a lot of tokens very cool and there's still a lot of traders that are using centralized cryptocurrency

2:45exchanges maybe they haven't dabbled into d5 and dexes because either slightly more technical not too bad now it's getting pretty good with the user experience but it's definitely a niche of people that are doing liquidity provision and not just trading or just holding bitcoin and ethereum when you were building open leverage what did you see as a target audience or

3:06who were the main kind of traders that were going to be using the technology and want to take it sure so when we built out open leverage we really tried to make the interface approachable to both the veterans who are used to working within centralized exchanges that are interested in long or shorting any token but also defy users that are interested

3:31in now participating in the exact same functionality so there's a very simplified type interface that allows really anybody who's familiar with the trading interface to come on in but additionally we're encouraging new people to start this as well i think the really exciting part is that it's democratizing it too so even if you're not longing or shorting a token you can actually

3:53take advantage of the yield farming opportunities d5 which a lot of people are quite interested in doing without impermanent loss you can deposit tokens and really encourage a community of users to get rewarded for providing liquidity for margin trading definitely and with this permissionless being able to add trading pairs and sort of without authority just

4:17do whatever you'd like on the platform for new users that might be a little daunting but for the experienced users are there any limitations on what you can do although it's a decentralized exchange maybe it's not fully permissionless or do they really have full reins of creating kind of whatever liquidity and trading pairs that they want it is quite permissionless and that's

4:41really the vision of this platform is that any token that you wish to bring to it you can do and this is really what distinguishes our type of leveraged trading from many other centralized exchanges and even decentralized exchanges that offer leveraged trading ours is actually truly permissionless this is being done because normally in a centralized exchange well of course

5:03you're going to have to ask the centralized exchange to both list your token and then even if you got listed on a centralized exchange it's quite rare that they're going to allow your token to get leveraged trading they're only going to enable maybe hundreds or in the case of binance maybe thousands of tokens but it's not every token that gets this capability and as we shift

5:22over to d5 even with most d5 models they're still quite permissioned and although this sounds contradictory what's happening in many cases for these d5 products is they're relying on things like chain link oracles and no no faults of their own but these are permissioned getting the oracle to provide this pricing information on chain becomes as a centralization in of itself

5:48open leverage is different this is truly permissionless you can come you can bring any token you wish as long as it's traded on a true decks like uni swap you can actually get it listed on open leverage and i think that's what our community is really finding quite valuable is that they can be completely permissionless very cool and thank you for that

6:08background into the intricacies of the dexes as well i think that brings a lot of light for traders especially people looking to get into permissionless trading and now that you say that there really are no permissions what can we get a snapshot of where open leverage is at with that are there a lot of people just coming in and starting to add trading pairs and add liquidity

6:32and where is the platform at with that right now jackie so yeah so we have successfully deployed to ethereum recently in december and currently working on ruling out a lot of the two other evm compatible chains and looking for providing a much better experience in terms of transaction cores and execution speeds on avalanche and phantom psc and polygon

6:57so in the near future we will support a limit order for all pairs on the market which is also amazing infrastructure for many training players across the market as well so in longer term we have a plan to build infrastructure to support social training where training leaders can invite their followers to join their portfolios trustlessly and this could be

7:19gamefy and also incentify with nft system as well very cool i like that the social trading and you know i feel like a lot of traders that are scouring twitter social media trying to look for tips and tricks and to sort of build it right into the platform i think saves a few steps so i'm looking forward to that and i'm also curious about you know the platform itself a lot of dexes

7:45Compared to centralized exchanges not to say that it's more risky there's different kinds of risks between decentralized exchanges and centralized exchanges but there is more burden on owning your own funds and making sure that you do the right things because it is decentralized and part of that as well is the security and the safety of the funds and the trading and everything

8:06like that i saw that open leverages partnered with this code arena and maybe there's some other security and safety enhancements that you could talk about that you've used to make a safe place for traders to come on open leverage sure so security has been really core to our mission open leverage adopted from the get-go many measures to ensure the security and

8:29scalability of our d5 protocol for users so initially we've already gone through security audits with certic and peck shield and this new one now with code for arena is going to be just furthering that even to work with the community to find a any other vulnerabilities or bugs that could exist this is going to be an opportunity for

8:55the community to win 75 000 u.s dollars and this is just again something that we do natively we really really believe that the community is the best way of securing a protocol especially in d5 so this is a really exciting opportunity for white hat and to get involved as well as if you can find a way to optimize our protocol i would love to keep my gas costs down

9:17too that's amazing and yeah 75 thousand 000 there's a lot of people that are just sitting around coding and they could be earning money so i will definitely leave a link to that i saw that on you guys twitter i'll leave a link to that in the description as well for any people are interested in potentially helping and just looking through the platform and things like that

9:38great thank you ben and jackie as well for that information and jackie you did mention part of the plans in moving to the other chains and growing out in the d5 space and i think that's going to be a huge trend in 2022 and you also mentioned there about like the community and governance and allowing them to you know as a permissionless platform have a say and

10:00i'm curious if in the roadmap there's a part of a governance tokenization or some mechanism that the community can also use to contribute to the platform and maybe can hint it if that's something that's coming up in the future yeah sure as i mentioned our next major milestone is to implement our multi-chain strategy and capturing the market share and also

10:24integrating and collaborating with projects that with the ecosystems and bring value to the project and user and then we were looking to launch our only tokens in later this year so we will build out our tokenomics and ultimately launch the doubt which that have everyone and the community to have a say and move towards to a fully community driven protocol so

10:50that's that's the goal after going out to the multichain strategy very cool i like it and ben what do you think three to five years down the road when you know d5 is known by hopefully millions of more people what do you think one of the key factors to success will be for open leverage to be one of those main platforms that traders come

11:16to trade i think being involved with multiple projects that are taking off are is going to be key for what open leverage success is going to be we've seen that margin trading in general can accelerate any project and because of the nature of centralized exchanges blocking these new projects from getting that necessary feature it ends up being a hindrance to a

11:41project and the community as a whole to get their token price out there or even just to get the news to say well the token price moved and that often leads the story i think open leverage then needs to move to where the liquidity is and help the community out by saying you don't need to go to a centralized exchange in fact you can do the you can do an ido you can get

12:01your token listed there grow your community and help encourage your community to say margin trading is a way to grow the community it's a way to get better slippage rates on the decks because we'll have more people doing leveraged trading and as a result of this you get rewards that's a win-win lower slippage and yield farming is a positive thing so

12:23we're going to continue to really chase the communities to say this is a way to get the word out that leverage trading can help you and we're going to moving to places on layer twos where the liquidity is going to be filed in the future very cool and yeah with yield farming i feel like there's so many people that aren't capitalizing on yields that they could be and

12:45there's still a lot of people that haven't gone into margin trading as well but of course the risks are different in between spot trading and margin trading and i think there's a little bit of education or you know dipping your toe in a small way before you know go full out into into margin trading i fully agree i would encourage any user

13:05that's trying to stay low risk the yield farming with verifiable protocols that have done their security audits is a good way to get a bit of yield without taking on the risk and really if you can find ones that are single-sided yield forming where you don't have a permanent loss like open leverage it's a very good way of getting some interest for your capital that you

13:26already have of course margin trading has risks and for that i recommend it purely to the people that are more skilled but you might as well get benefits from it if you have a community that wants to increase you know the opportunities then using open leverage by doing yield farming without impermanent loss this is a great way to get definitely yeah well said and i like

13:50that you take that approach because there's people that aren't professional traders from 30 years just getting into crypto they get excited and they spend too much or they take too much risk and they don't realize what they're doing so really do take it slow you know even myself being years in the industry i like to do it but i like to make sure that i'm conscious about it

14:13and with defy it moves so quickly there's so many new coins and trading pairs and lending protocols coming out do you see what kind of challenges do you potentially see as you move forward in just the industry that you may have to overcome to make sure that you're staying in the eyes of the market i think well when we look at the d5 market landscape we thought that the

14:37oracle problem might be the main obstacle for d5 innovations and the current oracle system is quite expensive to set up and maintain sometimes likely due to the cosmic constraint and cannot support the limited set of data feeds and it's very slow to respond to market developments so from our experience that to build a truly permissioned market would definitely need that oracle

15:02something very low maintaining cost develops at the same speed as markets and also respond to the market change on time and most importantly secure so we spotted the time weighted average price system alcatiwap provided by unit swap which is pretty good piece of infrastructure for price tracing sorry so let me start again so then we spot a targeted average price system at

15:30cartiewa provided by unity swap which is a pretty good piece of infrastructure for price tracing so we built up landing and trading flow around it and further enhance it by calculating the risk with multiple t1 with pre-defined duration to make sure the prices are valid for all training trading activity and that will invalidate the a lot of like price manipulation attack because

15:54only the spot price can be easily manipulated but not too well so because the t-wipe system is supported by most of the other dexes so with that we can roll out to support as many tokens natively traded on all the amen based access as well so i think that's approach this will bring into the d5 and could be like leverage to develop to a lot of light derivative and also

16:20define product as well definitely and great point jackie and you did mention it before about the oracles and using chain link and that permissionless dexes they rely on oracles and sometimes those oracles most of the time there's you know some centralized entity that needs to bring those prices into d5 because the prices aren't actually on the blockchain they're got from other

16:43exchanges and you know the average so i really like what you mentioned there about time weighted average price and making sure there's more confidence in the prices that are on open leverage so very cool gentlemen i really appreciate you taking the time to come on i'm looking forward to seeing this multi-chain expansion that you mentioned there on open leverage

17:03and for people that are interested in trading doing the yield farming as you mentioned ben and doing liquidity provision on open leverage what is the best way for them to learn more and to get involved apologies i thought that was going to jackie alright i'll take it one moment i think the best way for people to get

17:30involved with open leverage is to come on out first and see our website it is really a web 3 app that's been designed for any user to come and quickly learn what is margin trading and how can we use open leverage to do permissionless margin trading so i encourage anybody to come on out and take a look at that first we also have a really growing community

17:52that's of ambassadors that are forming on multiple different social media so from our website you can come and take a look and ask questions at our discord ask questions in our telegram and learn from other users you don't have to be an expert in margin training to get real tangible benefits yield farming opportunities in particular for people to just start saying what can

18:15i do open leverage do for me and if you are a small project that's looking to list your token on it dex you really should be looking first and foremost at what can open leverage do for you and helping grow your community nothing excites the community more than to see the token price going up and nothing makes that faster than margin trading so being able to make sure

18:36part of your tokenics for your project includes a portion going into a liquidity pool for margin trading that will help ensure that happens and you don't have to do it through a centralized exchange you can still ideal on index and you can still offer now margin trading and get these benefits for your community so we'd love to have discussions with any project that is

18:56interested in learning more about that very cool thank you for all the information ben and jackie it sounds like you guys really understand the protocol obviously here i will leave the link to openleverage.finance and the telegram and twitter that you mentioned as well in the description box below for the viewers i appreciate you coming on to take that take the time to speak with us

19:19i would love to follow up again when you guys have made more updates and i want to hear about how the multi-chain expansion goes until then let's follow up in the near future thanks thanks house tom thanks ashton you