Leveraging DeFi market with leveraged transactions
Lending agreements and decentralized exchanges have become two important pillars of the DeFi industry. According to the latest data from DeBank, following a new high in May, the total lock-in volume of the DeFi ecosystem has once again exceeded $100 billion, with the top 10 lock-ins being for lending and DEX-type applications.
However, the two rarely intersect, and the market lacks direct borrowing usage or transaction scenarios, which leads to low asset usage rates in lending platforms and ultimately leads to the current situation of low asset deposit rates in lending platforms. According to statistics, the annualized interest rate of stable coins in DeFi platform is 5%~12% for a long time, while the annualized interest rate of mainstream assets such as WBTC and ETH is less than 0.1%~1%.
In addition to low returns, the fragmentation of the lending and trading agreements has also caused users to be unable to directly facilitate leveraged trading on DeFi. To trade with leverage, users first need to borrow the appropriate percentage of crypto assets from Compound or Aave and then go to Uniswap or Sushiswap to trade. The whole process is cumbersome and complicated, and it is difficult for users to centrally manage their positions for leveraged trading, which greatly increases costs and trading risks.
Vee.Finance innovatively and effectively blends lending protocols and leveraged trading, combining the features of lending protocols and the DEX platform. Depositors deposit crypto assets into the lending pool and receive interest returns while providing the underlying asset backing for the lending pool and trading. Borrowers or traders pledge assets and then borrow the required tokens, with the borrower or trader paying interest but with a liquidity mining bonus.
The first DeFi lending platform with DEX integration
For traders, liquidity is always the number one priority. To ensure that the platform has sufficient trading liquidity, Vee has entered into a strategic partnership with decentralized exchange Ponglin and will introduce other external automated market makers in the future. Vee pool offers up to 3x leverage to open positions and users are free to choose to go long or short. With Vee, users can use their existing assets to make more profit.
For example, in the ETH-AVAX trading portfolio, you can directly borrow crypto assets in the pool to leverage to go long or short, or you can provide ETH or AVAX as liquidity to borrow to other users to trade for interest. The “Borrow Limit” shows the maximum number of tokens that can be borrowed, and the user can set the stop-loss and stop-gain points and automatic settlement period.
Considering the high risk of leveraged trading, Vee provides users with position-by-position leverage, i.e. each pair in each account has its own position, and the risk of each position-by-position account is not affected by each other. In the event of a position blowout, there is no impact on the rest of the position-by-position accounts. This feature provides a stronger sense of risk control for the user’s overall position and allows the risks of different assets to be isolated from each other.
It is worth mentioning that users who participate in leveraged trading can not only make profits through trading strategies but also “weed”. For example, 1) trading is mining, as long as you participate in leveraged trading, you will be rewarded with platform tokens; 2) deposit income, providing liquidity to borrow to other users, you will get interested + platform tokens income; 3) acquired platform tokens can be pledged (taken out at any time) to share the platform income.
Convenient and safe trading experience
Leveraged trading enables users to access more funds and amplify the trading results, it is the darling of the traditional financial market and has a huge demand in the DeFi industry, and the market volume of leveraged trading is huge, with trillions of transactions per year, which can be on par with the volume of the spot trading market, many products will appear in this track, but only really good user experience and security is what the market needs.
Vee smart contracts have passed the U.S. Certik code audit, and the platform protects user assets by creating a security engine, optimizing the defense process, and a vulnerability bounty program. In terms of capital depth, Vee uses the mechanism of introducing external AMM to provide users with a greater depth of transactions and is safe and secure. Meanwhile, Vee’s product development team has many years of experience in Bank and Fintech, and the entire product design is structured in three major aspects: UI interface, asset storage and lending, and transaction execution, providing convenient interaction design for users’ storage and lending and transactions.
In addition, unlike other lending applications, Vee is based on the Avalanche public chain and is more friendly to users with small amounts of capital through extremely low transaction fees, TPS4,500+ and 2-second block-out speed, while experiencing an extremely fast network, users only need to pay a small number of Gas fees to make leveraged transactions on the platform.
As the first DEX-integrated DeFi lending protocol, Vee’s forward-thinking innovation and its not-to-be-underestimated product features enrich the DeFi ecosystem. Vee has completed a multi-million dollar seed round of funding led by Huobi Ventures Blockchain Fund and Avalanche Asia Eco Fund AVATAR.
Vee is currently open for beta network public testing, and the first airdrop campaign is in full swing. A series of updates and news on IDO, mainnet launch, etc. will be released next, so stay tuned!
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About Vee Finance
Vee.Finance is a DeFi lending platform for traditional financial and crypto users. We are committed to bridging the gap between traditional finance and DeFi and providing users with better digital asset management services. Users can participate in deposits, loans, long and short positions, and as well as other functions. Our mission is to reduce barriers for traditional users to participate in DeFi and optimize the efficiency of global asset allocation.