Are Infinity Pools the Next Big Speculation Primitive?

Introduction

Implementing leverage in crypto is not easy. Many current platforms use middle-term solutions or large off-chain components. Crypto leverage trading therefore lacks the composability and permissionless nature of other DeFi products.

Infinity Pools is an upcoming leverage trading DEX that offers unlimited leverage on any asset pair, with no liquidations, no oracles, and no counterparty risk. These are bold claims that would surely make it a noteworthy addition to the decentralized leverage trading space. Let’s take a look at how Infinity Pools works and how it offers these impressive features.

Current On-Chain Leverage Experience

Leveraged trading typically works by allowing a trader to borrow a multiple of their cash collateral to trade with. This exposes the protocol to trader downside. Price oracles trigger liquidations that unwind losing trades before the