Leverage on Waves.Exchange is a floating leverage margin trading tool. Unlike classic leverage trading, there’s no need to deposit any collaterals in leverage, so there is no margin call risk and you do not need to worry about collateral, margin maintenance, and therefore, the liquidation risk.
Instead of constant leverage, Waves DeFi assets have a constant target range of leverage.
Waves DeFi assets with floating leverage are currently available on the Waves.Exchange:
1) BTCUP and BTCDOWN — constant target range of leverage within from -3x to 3x.
2) WAVESUP and WAVESDOWN — constant target range of leverage within from -3x to 3x.
For instance, BTCUP & BTCDOWN - the leveraged movement of BTCUP and BTCDOWN assets depend on the market conditions and the value of their underlying asset Bitcoin (BTC). A 1% rise in the BTC price causes x3 growth in the price of the position asset BULL (BTCUP). In case the BTC price falls, the price of the position asset BEAR (BTCDOWN) rises.
Getting Started with Waves DeFi Assets
By tracking the change in the market value of the underlying Waves DeFi assets, you can determine which of the leveraged assets is currently profitable in order to proceed with your purchase deal.
Issue or redemption of DeFi assets
To issue \ redeem DeFi assets, you can use the Waves.Exchange app.
In order to proceed with this operation, you need to navigate to the Trading section, then select the Leverage menu, select the DeFi asset you are interested in and what you want to do (issue, redeem or trade on the exchange)
After clicking on Trade, you will be redirected to the exchange in the "selected DeFi asset"\USDN trading pair, where you can buy or sell a DeFi asset for USDN.
After clicking Issue, you will see a form for releasing the selected DeFi asset.
1 - Enter the amount in USDN that is given for the issue of asset DeFi (minimum amount of 10 USDN)
2 - In this field, you can see the approximate amount of DeFi assets to receive
3 - You need to familiarize the risk and pricing, then set the check box
4 - Press Issue
DeFi assets are received to your account within a few minutes. If during this period of time, after clicking the Issue button and before assets are credited to the account balance, the price slippage, then the DeFi assets are not received to the account balance, and the USDN spent is returned to the account balance.
After clicking on Redeem, you will see a form for redeeming the selected DeFi asset.
1 - enter the amount of the selected DeFi assets that you want to redeem
2 - in this field, you can see the approximate amount of USDN to receive
3 - you need to familiarize the risk and pricing, then set the check box
4 - press Redeem
USDN is received to your account within a few minutes. If during this period of time, after clicking the Redeem button and before crediting USDN to the account balance, there was a price slippage, then the account balance does not receive USDN, and DeFi assets are returned to the account balance.
Slippage when issuing or redeeming Waves DeFi assets
Slippage is the effect of changing the actual price of the token during settlement due to high volatility. To prevent the undesired experience of receiving fewer tokens or USDN than expected during issue/redeem.
If you have any questions related to Waves.Exchange, feel free to contact us via customer support.
tags: margin trade investment defi up down