LeverFi (LEVER): Navigating the Future of Leverage in DeFi

The explosion of interest in decentralized finance (DeFi) has led to a lot of exciting new programs and platforms. However, there are some areas where the DeFi landscape still lags behind traditional finance. LeverFi hopes to solve this problem by offering a unique new lending system to users. Will they be able to provide better lending services than traditional banks? To see how useful LeverFi actually is, let’s take a look at its mechanics and features.

Key Takeaways:

• LeverFi is a decentralized finance platform that offers leveraged trading. It lends funds to investors, who can then use those funds to trade crypto assets and earn money.

• LeverFi aims to provide more transparency and more protection from market crashes.

• Looking to trade LeverFi tokens? Bybit now offers the LEVER/USDT Spot trading pair for trading. To celebrate this listing, Bybit is also holding two events where you can earn part of a 45 million LEVER prize pool.

What Is LeverFi?

LeverFi is a DeFi platform that offers leveraged trading. It lends funds to investors, who can then use those funds to trade crypto and earn money. Compared to traditional leverage brokers, LeverFi aims to provide more transparency and more protection from market crashes.

What Is Leveraged Trading?

Leveraged trading is the practice of borrowing money from a lender for the purpose of investments. Also called margin trading, this strategy lets investors increase their position size and potentially earn bigger profits. However, it can also lead to larger losses if an investment fails.

History of LeverFi

LeverFi has its origins in a 2019 project developed by Lawrence Lim and Loh Zheng Rong. These Singapore-based developers were both originally in the private finance world and had plenty of experience with investing and lending. Eventually, they realized that these concepts could also work well in the crypto world.

They decided to join forces and create RAMP DEFI, a company that offered unique leveraged trading options for crypto enthusiasts. As they worked on RAMP DEFI, LeverFi's founders realized that the DeFi landscape was struggling with problems like liquidity and cross-chain compatibility. Therefore, they decided to pivot their project to address these issues. They renamed it LeverFi, and the decision was officially announced in March 2022. 

Since its creation, LeverFi has managed to attract a broad range of investors, including ParaFi Capital, Torchlight Ventures, Signum Capital and MW Partners.

What Does LeverFi Aim to Achieve?

The basic problem LeverFi is tackling is the difficulty of getting funds for investments. LeverFi tries to provide investors with capital by setting up a DeFi space that rewards both lenders and borrowers. Lenders temporarily deposit tokens and earn interest, while traders can borrow funds to fulfill larger orders for crypto.

LeverFi wants to be the best DeFi leveraged trading platform available. When its team were in the design stage of creating their program, they tried to identify and address the main problems in other DeFi leveraged trading spaces. They then chose to emphasize utility and created a platform that offers traders a full suite of services. 

Novice traders can use LeverFi's simple, collateral-based services, while expert traders can access pair trading, hedging and arbitrage tools. LeverFi hopes to stand out by offering a broad range of services delivered in an easy-to-use interface.

How Does LeverFi Work?

LeverFi’s ecosystem is built on the Ethereum network. It consists of layers of smart contracts that manage a variety of different tasks. Users can access the system through a dedicated app. LeverFi’s platform uses these components to keep its ecosystem functioning smoothly.

Collateral Manager

The Collateral Manager system keeps track of all the assets that traders deposit to back their loans. It can bundle multiple types of assets into a single collateral basket that can back fairly large loans from traders. To ensure that each trader is providing enough money for their single collateral basket, the trading Collateral Manager uses Chainlink oracles to validate deposits.

Trading Manager

The Trading Manager routes requests through multiple decentralized exchanges (DEXs) to find the best possible rates for traders. This blockchain technology also runs calculations for profit and loss, and keeps track of the entire LeverFi trade ledger.

Lending Manager

This collection of smart contracts manages assets that will be used for leveraged trades. It keeps track of who deposits how much money, and it manages storage for assets while they're left in lending pools. The Lending Manager system also features a utilization rate curve to calculate borrowing fees and help users earn yield on collateral.

Risk Manager

The Risk Manager system helps address potential problems before they destabilize the platform. Blockchain technology calculates the account health of individual traders and manages loan-to-value collateral risks. When an account accumulates too much debt without repaying it, the Risk Manager sells their collateral to add liquidity back to the LeverFi platform.

Features of LeverFi

Compared to other DeFi platforms for leveraged trading, the LeverFi platform contains a broad range of services for users to try.

Trade

LeverFi's platform allows people to buy and sell crypto with ease. The streamlined leveraged system lets you deposit collateral and instantly use it to borrow money for trades. One of the perks of LeverFi is that it bundles all your trading collateral into a single collateral basket. Unlike other lending platforms, you don't need to own a lot of a single type of token if you want to make leveraged trades. Furthermore, LeverFi offers you the ability to earn yield from collateral. All the tokens in your single collateral basket earn interest while you're busy trading.

Lend

LeverFi is also one of the few DeFi platforms to let you earn money with the extra crypto you own. To help other people make leveraged trades, you can place your tokens in LeverFi's lending pools to earn a percentage of the fees every time a trader uses your crypto for leverage.

Swap

LeverFi offers a variety of swaps between different cryptos, which makes it easy to do things like hedge your bets and take advantage of arbitrage opportunities while choosing your leveraged trade positions. For example, a trader can borrow from the BTC pool and buy ETH in order to short BTC while profiting off of Ethereum increases. This allows for a lot of different customized investing strategies.

Governance

The LEVER Governance Staking Program gives votes to token holders, who can vote to add new cryptos for people to trade or use as collateral, as well as add or remove lending pools. The community governance system also helps determine the launch of new incentive programs and the types of new networks deployed on LeverFi. In addition to being able to help set new rules for LeverFi, community governance members also get discounts on their trading fees.

LeverFi Road Map

Since the company originally began in 2019, they've achieved quite a lot as they’ve built their platform from the ground up, integrated a broad range of features and successfully released the beta version for users to explore.

In late 2023, the Lever road map will focus on the transition to theLEVER Governance Staking Program. They hope this will allow for more community input and keep the LEVER token’s price stable. The next step on their road map is to integrate user feedback and open up the platform to more users. There are plans to upgrade protocols, adjust the interface layout and provide more protections to prevent users from overextending their positions.

LEVER Tokenomics

The LEVER token is the utility and governance token for the LeverFi ecosystem. Token holders stake LEVER in exchange for votes in the LeverFi community governance system. LEVER is an Ethereum-based token with a total supply of 35 billion and a circulating supply of over 28 billion. The current LEVER market cap is over $38 million (as of Oct 10, 2023).

The LEVER governance token distribution system follows the distribution system for the RAMP tokens that they replaced. Thus, 20% of tokens were earmarked for protocol reserves, 16% went to the development team, 19% were sold and 45% held for farming reserves.

LEVER Price Prediction

As of Oct 10, 2023, the LEVER token is currently selling for around $0.00134583 per token. This is quite a drop from its all-time high of $0.00521513, which it reached on Jul 16, 2022. However, it has recovered a little from its all-time low of $0.00092297 on Nov 14, 2022.

CoinCodex reports that overall market sentiments for LEVER are bearish, as users expect prices to decline in the following weeks. In the next few months, token prices could potentially drop below $0.001. However, once the LeverFi token recovers from being overvalued, it has the potential to increase in price once more.Bitnation predicts that LEVER token prices will stabilize and possibly reach $0.004 again by 2024. It further believes that LEVER will continue to climb and exceed its all-time high by 2025, doubling in value by 2030.

Keep in mind that positive LEVER price predictions rely heavily on the viability of the LeverFi community. As long as LeverFi remains a popular trading platform, its prices are likely to rise and token holders to profit. However, if the project crashes and burns, LEVER would potentially lose all of its value.

Where to Buy LEVER

If you’re interested in trading LEVER tokens, look no further: Bybit now offers the LEVER/USDT Spot trading pair! To get started with trading, you’ll need to first establish a Bybit account and fund it with cryptocurrency. Then, proceed to navigate to the LEVER/USDT Spot trading page. 

To celebrate this listing, Bybit is holding two events where you can share in a 45 million LEVER prize pool! 

The first event is exclusively for new users who don’t have an account with Bybit. Simply be among the first 1,000 users to complete the following steps between now and Oct 20, 2023, 10AM UTC, to receive 10,000 LEVER:

1. Sign up on Bybit and complete Identity Verification

2. a. Accumulate a deposit volume of at least 100 USDT worth of LEVER, or

b. Deposit 100 USDT and buy 100 USDT worth of LEVER via your first trade using your Bybit account.

The second event is for all users who trade LEVER and accumulate a Spot trading volume of at least 500 USDT worth of LEVER between now and Oct 20, 2023, 10AM UTC. If you wish to increase your rewards, simply trade more! Please note that rewards for individual accounts will be capped at 3.5 million LEVER. 

Is LEVER A Good Investment?

LEVER definitely shows a lot of possibilities for savvy investors. The token is backed by a sound project that's already managed to deliver the flashy features it’s promised. The likelihood of it losing all of its value overnight is very small. Investors looking to diversify their portfolio by adding a small, long-term investment might find LEVER a good choice. 

However, keep in mind that LEVER's days of being a wildly hyped and trendy token are probably already gone. The token reached its all-time high over a year ago, and its price has sharply dropped since then. There may still be occasional fluctuations when LeverFi announces new features, but we recommend that you do your own research before investing in this token.

Closing Thoughts

LeverFi provides a lot of helpful services for traders. As long as you don't use their leveraged trading in a risky manner, it can be an excellent way to make impressive profits. Even those who aren't interested in leveraged trade positions can still potentially make money off of LeverFi. Its unique position in the DeFi space has attracted many investors who hope to profit by trading LEVER tokens.

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