What Is Level Finance?
Level Finance is a decentralized exchange (DEX) on the BNB Chain that offers spot and leverage trading based on an Oracle system. Level Finance utilizes a tranche-based liquidity pool to meet the needs of depositors with varying risk profiles.
Background
The mainnet launched in Q4 2022.
How It Works
Level Finance offers continuous access to programmatic pools of liquidity designed to help a wide range of digital asset owners hedge token positions with virtually zero impact on the underlying spot market. Its unique system architecture provides capital-efficient access to programmatic liquidity, requiring only 1/30th of the collateral necessary for comparable positions on traditional AMMs.
In addition, Level Finance is introducing user-elected credit exposure to its liquidity providers through a Risk Management Liquidity Pool (RMLP). The RMLP is designed to tackle functional issues endemic to zero-price impact perpetuals. Level Finance is intended to reintroduce autonomy to individuals through blockchain technology and digital assets. It addresses the lack of progress in the institutional asset class due to inherent volatility and the absence of risk management. Level Finance is permissionless, meaning it will not have custody of customer assets or store personally identifying information.
Key Takeaways
- Level Finance is a decentralized exchange on the BNB Chain that uses a tranche-based liquidity pool to accommodate depositors with different risk profiles.
- It provides continuous access to programmatic liquidity pools, helping digital asset owners hedge token positions virtually without impacting the underlying spot market.
- Level Finance requires only 1/30th of the collateral for comparable positions on traditional AMMs.
- It introduces user-elected credit exposure to its liquidity providers through a Risk Management Liquidity Pool, which aims to tackle functional issues endemic to zero-price impact perpetuals.
- The platform is permissionless, meaning it does not have custody of customer assets or store personally identifying information.
