Introduction
LEVEL is a decentralized and non-custodial perpetual exchange, with a focus on providing clear risk management solutions for liquidity providers. LEVEL is built from the ground up with an original codebase from entrepreneurs and contributors with over a decade of experience in the space.
LEVEL services the entire spectrum of market participants:
- Traders who are looking to directionally position themselves or delta hedge their portfolio
- Liquidity providers seeking to earn a passive yield on their assets
- Potential shareholders with the desire to steer the future direction and own the treasury backing it
- Transparency
- Self-custody
- Elimination of intermediaries
- Simple user interface
Transparency: LEVEL solves the problem of obscured Proof of Reserves and Balance Sheets on centralized exchanges. Users can enjoy transparency in trading on-chain where all trader positions and balances are accessible, along with the entire liquidity and treasury of the protocol.
Self-custody: The platform offers a self-custody solution with full autonomy for users. Unlike traditional centralized exchanges (CEX), there is no personal record keeping, and no custody of funds required by LEVEL. The platform supports most major wallets including Metamask, Walletconnect, Coinbase Wallet, Frame, Ledger, and Trezor.
Elimination of intermediaries: LEVEL eliminates intermediaries in digital asset trading. One of the main features of decentralized finance is to enable self-sovereignty, empowering users with full ownership and self-custody of their assets, and reducing third-party risks experienced with centralized exchanges or institutions. The blockchain itself paired with LEVEL’s smart contracts assumes the role of these intermediaries of the past.
Simple user interface: The platform is built with a simple interface for users without adding confusion around technical jargon such as margin, debt, collateral, etc. This makes it easy for traders to execute trades while managing their leverage and liquidation price well, reducing the barriers to entry for newer traders.
LEVEL offers a unique value proposition, differentiating it from centralized and decentralized exchanges (DEX) in the cryptocurrency market.
- Permissionless markets
- Real Utility, Real Cashflow, Real yield
- Leverage up to 50x with either Market or Limit Orders
- Minimal price impact trading and reduced risk of liquidation with Chainlink Oracles
- Innovative Liquidity and Risk Management Solution
Permissionless markets: All exchange trades and swaps are self-executed with smart contracts, which means that even if the user interface goes down, users are still able to access and manage their positions. At LEVEL all traders are equal. There is no prioritized access, and everyone gets equal treatment, unlike some practices in traditional finance or centralized exchanges.
Real Utility, Real Cashflow, Real Yield: LEVEL’s utility lies in offering a decentralized, fully permissionless and non-custodial perpetual DEX. Liquidity providers, traders, and other stakeholders can generate real yield from platform revenue and participate in governance, opening up community ownership of the DAO Treasury.
Leverage up to 50x with either Market or Limit Orders: Users can margin trade with up to 50x leverage. The non-stablecoin assets are available to margin trade. Besides market orders, LEVEL offers on-chain limit orders for both perpetuals and swaps, increasing trading flexibility and the possibility of more complex strategies.
Minimal price impact trading and reduced risk of liquidation with Chainlink Oracles: LEVEL uses Chainlink Oracles to offer minimal price impact trades, resulting in improved execution for perpetual trading. Minimal-price impact means that trades made by a user do not move the market price as with CEX order books or spot DEX AMMs (Automated Market Maker - e.g. Uniswap), but may still incur slippage. Slippage is caused by external market movements between when your trade is executed and when it is confirmed on the blockchain, defined as the difference between the expected price of the trade and the execution price.
Innovative Liquidity and Risk Management Solution: LEVEL recognizes liquidity providers (LP) are crucial to the continued functioning of the platform and enables them to choose their level of risk exposure when providing liquidity. Inspired by the rating of mortgage-backed securities (MBS) or bonds, which can span from Triple-A (risk-free yield, usually treasury bills) to riskier assets, LEVEL uses tranching to separate LP positions into separate vaults, with programmatically defined risk exposures.
Last modified 2mo ago