Is Leverage trading on DeFi possible?

I’m looking for solid protocols to do leverage trading on DeFi(long/short). This is possible on binance but not so ideal to me. I am more comfortable trading with decentralized exchanges for the fact that I believe in complete ownership of my funds. Centralized exchanges are risky as we have seen quite a number of issues with top centralized exchanges especially with the FTX collapse. Do we have some DEFI protocols that support leverage trading? Please share your ideas irrespective of the blockchain.

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7 thoughts on “Is Leverage trading on DeFi possible?”

  1. It’s definitely possible. Depends on what you are looking to trade and what you’re okay with paying in fees.

    You can do leverage trading on DeFi borrowing and lending marketplaces if you know how to borrow and loop assets. Protocols that automate this process are typically labeled “leverage yield” farms on data aggregators, like DeFillama.

    When most people think of leverage trading, however, they’re likely thinking of the type of aesthetic that accompanies projects like : GMX, Gtrade (GNS, Gains Network), DYDX, KWENTA, or Apex Exchange.

    Each is worth checking out (different assets and fees). Some even allow for Forex trading.

  2. It’s very possible to leverage trade on DeFi platforms
    Here is a hypothetical long leverage  example with youves protocol on tezos.
    With a starting trading capital of $100 in USDT and assuming XTZ price of $1, you can potentially profit from a bullish XTZ market.

    **Here are the steps:**
    Purchase 100XTZ ($100) assuming a market price of  $1 per XTZ.
    Mint 50uUSD with your 100XTZ on Youves using the 0% minting fee engine and at a collateral ratio of 200%.
    Sell minted 50uUSD for 50XTZ, which gives you a total of 150XTZ.
    Wait for an increase in the price of Tez (e.g to $1.3). Your 150XTZ (collateral in vault + 50XTZ in wallet) is now worth $195.
    Buy back and burn (payback) 51uUSD, including accrued lending fees.
    You’re left with $144 worth of XTZ.
    Sell off for 144 USDT, giving you roughly $44 in profit or a 44% ROI.
    Please note that this is not intended to be financial advice, and leverage trading comes with risks. Always DYOR.

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  4. Of course! Leverage Trading on DeFi is possible using LeverFi.

    Leveraged trading has long been a popular strategy for traders looking to amplify their gains, but until recently it has been difficult to execute in the crypto space. That’s where LeverFi comes in.

    LeverFi is a decentralized platform that allows traders to engage in leveraged trading on a range of crypto assets. By providing access to leveraged trading with up to 10x leverage, LeverFi enables traders to boost their returns without having to risk more capital. And because it is built on a decentralized smart contract infrastructure, all trades are transparent and fair.


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