OpenLeverage is a permissionless margin trading protocol that allows traders or other apps to buy or sell any DEX trading pair efficiently and securely.
What is OpenLeverage (OLE)?
OpenLeverage is a permissionless margin lending trading platform that allows traders or apps to buy or sell any cryptocurrency trading pair on decentralized exchanges (DEX) efficiently and securely. The protocol works on the BNB chain and Ethereum and connects users to liquid DEXs like Uniswap, Pancake Exchange, and SushiSwap, among others.
With two different pools with different risk and interest rates for each pair, OpenLeverage allows traders to invest according to the risk they are willing to take. Additionally, the platform offers traders the advantage of calculating the guarantee index with real-time Automated Market Maker (AMM) prices for any trading pair on a DEX.
Additionally, OpenLeverage uses Time Weighted Average Price (TWAP) to create OnDemand Oracle, which automatically updates based on trading interest. This feature helps prevent price manipulation in the market without permission. Additionally, OpenLeverage offers an intuitive interface to simplify the margin trading process.
How does OpenLeverage work?
At OpenLeverage, borrowers and transactions are anonymous but transparent. However, they align with smart contract rules. All funds are stored in smart contracts until conditions for closing trading and borrowing positions are met. OpenLeverage allows anyone to create loan pools for any token listed on a DEX. After creating a loan pool, other users must add liquidity, allowing other merchants to borrow. Lenders have different interests depending on how the pool is used.
Users who fund loan pools receive LTokens, an interest-bearing token. LTokens accrue interest via their exchange rate over time. Each LToken is convertible into an increasing amount of its underlying assets. Users can stake LTokens on yield farms from other projects to get more rewards. Traders can choose to borrow from any pool in a trading pair and move to another token as a leveraged position, staking a certain amount of tokens as collateral. After the trader closes the position, OpenLeverage pays back the borrowed loan with interest. The trader then receives his deposit plus or minus any profit or loss.
Each pair has its collateral ratio due to varying volatility in different currencies. The governance process can modify the collateral ratio of each market to best protect the interests of creditors. Taders must keep the collateral index above the market cap to avoid liquidation. As long as a trader’s collateral is higher than the collateral index, they can open leveraged positions ranging from 1.1x to 7.1x.
Every transaction in OpenLeverage is executed on a DEX. AMM calculates the entry or exit price, just like prices are calculated on Uniswap. OpenLeverage charges a 0.22% transaction fee on top of the trading fees charged by a DEX. OpenLeverage allocates 33.3% of transaction fees to the Autonomous Insurance Fund to protect creditors against unforeseen losses. 46.67% of transaction fees go to the staking reward program and the remaining 20% goes to the development fund for sustainability.
OLE is the utility and governance token for OpenLeverage. Users who own and lock OLE will be eligible for a wide range of benefits, including protocol decision governance, reduced trading fees, enhanced loan rewards, and many other benefits. There is an exceptional supply of 65,956,030 OLE tokens and a maximum supply of 1,000,000,000 OLE tokens.
When users provide liquidity to the OLE-BUSD pair on a designated DEX partner and stake their LP tokens on OpenLeverage on a guaranteed term contract, users receive xOLE in return. xOLE is the governance token of OpenLeverage. Users can lock their LP tokens for a duration between 2 weeks and 4 years, with higher xOLE rates for a longer duration, up to 436%.
Benefits and privileges granted to xOLE holders:
- Holders receive 50.00% of the trading fees generated by the epochs. Accumulated fees will buy OLE on the open market for 7 days after the end of each epoch, then be distributed evenly among xOLE holders.
- Users receive more OLE tokens, further increasing the LP block field.
- Up to 2.4x more payout on loans and trades based on locked LP value and time left to unlock.
- Participation in governance for the distribution of incentives.
Where to buy an OLE token?
The OLE token can be purchased on several major cryptocurrency exchanges, among the most important: CoinW, BingX, MEXC and Bitget.
OpenLeverage (OLE) Price Prediction
The price of OpenLeverage is expected to peak at $0.0959 throughout 2022. According to our Crypto Price Prediction Index, in 2023 the price of OpenLeverage (OLE) may reach a high of $0.1846, with a price of average trading of $0.1373. According to our Crypto Price Prediction Index, in 2025, OLE is expected to cross an average price level of $0.2225.
The expected minimum OpenLeverage price at the end of the current year should be $0.2055. Moreover, OLE can reach a maximum price level of $0.2268. The price of OpenLeverage is expected to reach the lowest possible level of $0.1970 in 2030. According to our Crypto Price Prediction Index, the price of OLE may reach a maximum possible level of $0.3632, with an expected average price of $0.2737.
Unlike centralized cryptocurrency margin trading platforms, OpenLeverage is permissionless. This means that anyone can create loan pools for any trading pair available on a DEX without seeking permission from a centralized entity. Additionally, the protocol design is resistant to flash lending attacks. In OpenLeverage, a user cannot open and close a position on the same block. Additionally, the protocol references OnDemand Oracle to ensure the validity of the settlement price. This feature helps prevent attackers from manipulating prices, triggering sales to earn money, or creating cascading sales.
Learn more about OLE
* PortalCripto values the quality of the information and attests to the verification of all the content produced by its team, emphasizing however that it does not make any type of investment recommendation, not being responsible for losses, damages (direct, indirect and accessories ), costs and loss of profit.