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Easyfi launches new product “Electric” to bring Permissionless Margin Trading capabilities to DeFi using its lending protocol

Let’s Go Electric..!

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Testnet starts on Polygon Now Live

Decentralized exchanges (DEX) have been able to gain a large market share from centralized exchanges (CEX), especially by creating more than 20,000 tokens, all of which have varying liquidity. However, one area where DEXs are still lacking is margin trading. While centralized exchanges have more than $200 billion in margin trading daily, DEXs fall short of a fraction of that volume.

EasyFi, a common Layer 2 multi-chain lending protocol, is taking steps to increase the value of the DeFi space with its protocol. It has announced a new product called “Electric” that allows DeFi users to make margin trades outside the confines of a centralized exchange using its lending protocol.

Expanding the lending strategy

“Electric” is just the latest EasyFi’s vision to get DeFi users to #DoMoreWithDeFi. The launch of Electric marks the next step in their lending strategy.

This allows users to obtain short-term loans and use them to engage in margin trading. All of this is done with publicly procured liquidity available from various Automated Market Makers (AMMs). Electronic users will be able to trade with the most liquid decentralized exchanges and AMMs through a collaboration that is being explored by the EasyFi team.

Lenders in liquidity pools can invest smartly by giving them a calculated risk-reward ratio. Because separate pools are created for each asset pair, lenders can understand the risk and return associated with each investment right from the start.

Perhaps the most important of them is Electric’s user interface. As with all decentralized finance protocols, ease of use is important to ensure a seamless experience for users. Electric is designed with the same simple, intuitive and user-friendly interfaces associated with EasyFi products.

Electric Litepaper has also been published to introduce the idea, motivation and concept behind Electric, how it works, a step-by-step guide and some basic concepts in EasyFi’s new MarginTrading DEX product.

What to expect

Electricity has a lot of promise in terms of the decentralized financial space. To this end, the EasyFi team has outlined some of the things that users can expect from the product.

Versatile trading pairs

One way that centralized exchanges continue to dominate is through the diverse range of trading pairs that traders can choose from. Electric is expected to have different trading pairs based on separate and independent loan pools available to traders. Initially, the number of tokens to be tested is small, but over time they will expand to include both volatile and stable assets.

Margin market/interest rates

Traders who wish to participate in the margin trading market must first place collateral with Electric. In addition, lenders can earn high returns when they deposit funds directly into the loan pool. They earn from the interest paid by leveraged traders, as well as other commissions that are only available to lenders through exclusive programs.

Loan pools in several chains

Electric will be a product of multiple chain margin trading. It will first start with Polygon and then expand to other chains including BSC and other networks.

Community oriented

Eventually, when Electric goes online and EasyFi publishes the DAO, the community will take responsibility for decision-making – such as adding new loan collateral, setting late interest rates, adding new margin trading pairs, setting risk parameters, and more.

Preparing for take off

Electric is now launched on Polygon Mumbai Testnet. It has connected with QuickSwap Testnet to provide DEX integration to complete the trading process. This way, the community can test the protocol before it goes live on the mainnet. EasyFi also plans to partner with other DEX devices to integrate them with Electric.

For now, community members can test leveraged trading on the Electric testnet version, starting with the test resource xUSDC. Many more tokens and blockchains are planned to be added during the testing period.

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