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OpenLeverage Launches Permissionless Liquid Market to Empower Crypto Users and Projects

Tue, 03/28/2023 - 13:01
OpenLeverage Launches Permissionless Liquid Market to Empower Crypto Users and Projects
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Binance Labs-backed OpenLeverage is proud to announce the launch of its Permissionless Liquid Markets feature, a game-changing addition to the permissionless platform that offers users unparalleled financial freedom while maximizing returns for borrowers, lenders, projects, and communities.

This innovative feature allows users to borrow funds using any token as collateral, enabling the leveraging of long-tail assets and diversification of cryptocurrency portfolios. In doing so, it creates a thriving lending ecosystem for the entire crypto market.

Bridging the gap for altcoins

As of March 2023, over 22,900 tokens exist on the cryptocurrency market, boasting a combined market cap exceeding $1.1 trillion (according to CoinMarketCap data). Despite this vast market, most assets lack access to fundamental cryptocurrency financial services like deposit-to-earn and borrowing. Instead, they are limited to pass-through issuance and decentralized exchange trading.

Leading crypto pledge-lending platforms, such as AAVE and Compound, support only a small fraction of tokens (13 and 20 tokens, respectively). This exclusion of 99.99% of tokens from lending financial services presents a conundrum that has captured the attention of many in the crypto space. With over 22,000 assets and a market capitalization surpassing $150 billion, the market actively seeks a suitable financial service.

Introducing OpenLeverage’s (OLE) Permissionless Liquid Markets

As a fully permissionless and scalable margin trading protocol, OpenLeverage introduces Permissionless Liquid Markets, enabling users to create a lending and borrowing marketplace for any token pair. This approach fosters more efficient capital use and helps users benefit from arbitrage opportunities.

For example, OpenLeverage's over-collateralized borrowing feature enables the community to create lending pools for tokens like OLE, even if other lending markets do not accept them. The OLE-USDT over-collateralized lending pool lets users freely deposit OLE and borrow USDT.

Additionally, OpenLeverage aims to enhance fund usage efficiency by offering more funds to borrow than other platforms. For instance, depositing 1 BNB on Venus lends out about 0.6 BNB of BUSD, whereas on OpenLeverage, the same 1 BNB collateral lends approximately 0.7 BNB of BUSD.

Permissionless Liquid Markets also boost liquidity for numerous token pairs on the chain, allowing users to lend more assets and margin trade across OpenLeverage's token pairs and provide leverage to any on-chain token. Users can enjoy additional rewards for using Permissionless Liquid Markets, earning rewards for lending in addition to APY for deposits.

This creates a new arbitrage opportunity: lending long-tail tokens with high APY by depositing stablecoins or mainstream tokens like BTC while generating revenue without exposure to long-tail tokens' price fluctuations.

New rewards opportunities for project owners

As Permissionless Liquid Markets gain recognition among projects, OpenLeverage enhances the ability of project owners to offer token rewards. Any project or community can now add trading and lending rewards to any pool on OpenLeverage.

This development has significant implications for projects previously excluded from the lending markets. By encouraging project deposits of their native tokens to reduce token circulation, incentivizing deposits to increase liquidity, and allowing for leverage, OpenLeverage's Permissionless Liquid Markets help projects better drive their token economy.

OpenLeverage's Permissionless Liquid Markets is already deployed on BNB Chain, with plans to expand the feature to Ethereum, Arbitrum, and other chains in the near future. With this groundbreaking feature, OpenLeverage aims to reshape the lending landscape and empower the entire cryptocurrency ecosystem by unlocking new opportunities for users, project owners, and communities.

As OpenLeverage continues to innovate and expand, its Permissionless Liquid Markets will play a pivotal role in fostering a more inclusive and robust lending environment, ensuring that no token is left behind in the ever-evolving world of cryptocurrencies. The future looks bright as OpenLeverage paves the way for a more accessible and dynamic financial landscape within the cryptocurrency market.


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