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What is the #DefrostV2? A thread 😎
The Defrost V2 is a new-generation decentralized leverage trading protocol on #Avalanche 🔥
You can:
💱 Trade major crypto assets on leverage
💵 Contribute their assets in lending pools powered by #SuperVaults to earn yields
What is the #DefrostV2? A thread 😎
The Defrost V2 is a new-generation decentralized leverage trading protocol on #Avalanche 🔥
You can:
💱 Trade major crypto assets on leverage
💵 Contribute their assets in lending pools powered by #SuperVaults to earn yields
2/7
Leveraged trading refers to borrowing assets to long or short #crypto 📚
👏 This allows traders to use greater capital with relatively little underlying funds, amplifying results
🚨 Traders can realize bigger profits when successful, but also suffer larger losses
Leveraged trading refers to borrowing assets to long or short #crypto 📚
👏 This allows traders to use greater capital with relatively little underlying funds, amplifying results
🚨 Traders can realize bigger profits when successful, but also suffer larger losses
3/7
The super vaults 🚀
👉 To power traders' leverages, Defrost uses special #supervaults that collect yields from third-party platforms
👉 When users deposit tokens, the super vault collects fees & rewards from the interoperated platform associated with that specific pool
The super vaults 🚀
👉 To power traders' leverages, Defrost uses special #supervaults that collect yields from third-party platforms
👉 When users deposit tokens, the super vault collects fees & rewards from the interoperated platform associated with that specific pool
4/7
👀 When traders open positions, assets are withdrawn from yielding positions & lent
💵 This entails higher returns for LPs, as the rewards from trading are higher than those from other protocols
💰 Thus, super vaults provide a clear base APY which only grows with trading
👀 When traders open positions, assets are withdrawn from yielding positions & lent
💵 This entails higher returns for LPs, as the rewards from trading are higher than those from other protocols
💰 Thus, super vaults provide a clear base APY which only grows with trading
5/7
✔️ Positions in the super vaults are tokenized, accruing interest & rewards from third parties
✔️ Tokenized positions are called Lending Switch tokens, meaning the protocols for basic rewards can be switched if one's yield is higher
✔️ The rate for borrowers is constant
✔️ Positions in the super vaults are tokenized, accruing interest & rewards from third parties
✔️ Tokenized positions are called Lending Switch tokens, meaning the protocols for basic rewards can be switched if one's yield is higher
✔️ The rate for borrowers is constant
6/7
On leverage 💹
👏 The #DefrostV2 relies on liquidity pools from @TraderJoe
🌊 These well-established pools already powering spot trades underpin the leveraging mechanism
👌 Trades are made on partner exchanges, helping to smoothly bootstrap liquidity, with lower slippage
On leverage 💹
👏 The #DefrostV2 relies on liquidity pools from @TraderJoe
🌊 These well-established pools already powering spot trades underpin the leveraging mechanism
👌 Trades are made on partner exchanges, helping to smoothly bootstrap liquidity, with lower slippage
7/7
Safety first 🔐
🔎 The leverage trading contracts have been audited by @CertiK
🗝️ Centralization issues have been dealt with by using a multi-signature controlling account with five keyholders
🧑🏭 No contract in #DefrostFinance can be upgraded
Safety first 🔐
🔎 The leverage trading contracts have been audited by @CertiK
🗝️ Centralization issues have been dealt with by using a multi-signature controlling account with five keyholders
🧑🏭 No contract in #DefrostFinance can be upgraded
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