Levana
Levana A fully funded protocol is a perpetual swap protocol for leveraged trading contracts. Its goal is to manage risk and provide returns for both traders and liquidity providers. For traders,Levana the solution is to ensure that all positions are “fully funded,” meaning that the maximum profit for each position is locked in advance. This eliminates the possibility of bad debt and insolvency, thereby providing greater security. On the other hand, liquidity providers earn returns for bearing the risk of market volatility. They provide funds as collateral and, in return, receive fees that include a risk premium. The protocol addresses issues faced by existing perpetual swap models, such as virtual AMM. These models rely on complex mechanisms to maintain price stability, but they have limitations and may also introduce risks in highly volatile markets. By separating different trading pairs and establishing decentralized markets for liquidity,Levana reduces the likelihood of risk contagion across different markets. This also makes it easier to scale to other blockchain networks. Overall,Levana's perpetual swap protocol provides a reliable and secure platform for traders and liquidity providers. It ensures fair settlement, minimizes risk, and supports the development of other financial protocols on top of tokenized positions.
Overview
Levana A fully funded protocol is a perpetual swap protocol for leveraged trading contracts. Its goal is to manage risk and provide returns for both traders and liquidity providers. For traders,Levana the solution is to ensure that all positions are “fully funded,” meaning that the maximum profit for each position is locked in advance. This eliminates the possibility of bad debt and insolvency, thereby providing greater security. On the other hand, liquidity providers earn returns for bearing the risk of market volatility. They provide funds as collateral and, in return, receive fees that include a risk premium. The protocol addresses issues faced by existing perpetual swap models, such as virtual AMM. These models rely on complex mechanisms to maintain price stability, but they have limitations and may also introduce risks in highly volatile markets. By separating different trading pairs and establishing decentralized markets for liquidity,Levana reduces the likelihood of risk contagion across different markets. This also makes it easier to scale to other blockchain networks. Overall,Levana's perpetual swap protocol provides a reliable and secure platform for traders and liquidity providers. It ensures fair settlement, minimizes risk, and supports the development of other financial protocols on top of tokenized positions.