The heart of our leverage trading ecosystem is the leverage pool, a dedicated treasury that funds the leverage trading activities within our smart contract and bot codebase.
Diverse Funding Sources: The leverage pool derives its capital from various sources, ensuring solvency at all times. These sources include token taxes, 90% of NFT sales, lending fees, profitable trade fees and liquidation fees. Importantly, this funding model ensures that your invested funds are never directly at risk due to the intricacies of our trading logistics.
Protection of User Funds: Your capital is never deposited directly into the leverage pool. Instead, it remains securely in your open position, protected from any potential exposure to an exploit. This design ensures that your funds are always under your control, providing peace of mind throughout your trading experience.
Instantaneous Transactions: The nature of leverage trading demands rapid and precise transaction submissions to the blockchain to maximize the likelihood of achieving the quoted purchase price as offered by the bot. Consequently, the leverage pool cannot employ a multi-signature (multi-sig) mechanism, as it may introduce delays incompatible with the speed required for accurate execution.
User-Centric Liquidation: In the event of a liquidation, the bot will intervene responsibly. The recovered funds, which typically range from 0% to 30% of the position, are added back into the leverage pool. This approach ensures that the leverage pool remains solvent, well-capitalized, and ready to support future leverage positions.
Our leverage pool is the backbone of 0xLervages financial stability, drawing funding from various sources while prioritizing the security of your assets. It is structured to empower your trading experience while minimizing any associated risks.