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

Testnet launch on Polygon now live

Decentralized exchanges (DEXs) have been able to capture a large market share from centralized exchanges (CEXs), particularly with the creation of more than 20,000 tokens, all with varying degrees of liquidity. However, one area where DEXs are still lacking is in margin trading. Where centralized exchanges generate more than $200 billion in daily trading volume in margin, DEXs lag behind with just a tiny fraction of that volume.

EasyFi, a universal Layer 2 multi-chain lending protocol, is taking steps to boost the DeFi space via its protocol. It has announced a new product called “Electric” that will allow DeFi users to trade on margin outside of the confines of a centralized exchange using its credit protocol.

Expansion of the credit strategy

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

This will allow users to get short-term loans and use them to carry out margin trading activities. All of this is done with publicly sourced liquidity available on various Automated Market Makers (AMMs). Electric users can trade with the most liquid decentralized exchanges and AMMs through collaborations verified by the EasyFi team.

Liquidity pool lenders can invest intelligently by receiving a calculated risk/reward ratio. Because dedicated pools are created for each asset pair, lenders can understand the risk/reward tradeoff associated with each investment from the start.

Perhaps the most important of these is Electric’s user interface. As with any decentralized finance protocol, ease of use is important to provide users with a seamless experience. Electric is equipped with the same simple, intuitive and user-friendly interfaces associated with EasyFi products.

The Electric Litepaper has also been published to present the idea, motivation and concept behind Electric, how it works, a step-by-step guide and some core concepts in EasyFi’s new product for margin trading on DEXs.

What to expect

Electric shows promise for the decentralized finance space. To that end, the EasyFi team has outlined a few things that users can expect from the product.

Various trading pairs

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

Margin Markets/Interest Rates

Traders wishing to participate in the margin trading markets must first deposit collateral with Electric. In addition, lenders can earn high returns by depositing assets directly into the loan pools. They earn on the interest paid by leveraged dealers, as well as other rewards only available to lenders through exclusive programs.

Credit pools on multiple chains

Electric will be a multi-chain margin trading product. It will start on Polygon first and then expand to other chains including BSC and other networks.

community-centric

Eventually, once Electric goes mainnet and EasyFi launches its DAO, the community will take over decision-making – like adding new collateral, setting default rates, adding new margin trade pairs and setting risk parameters, and more.

Ready to take off

Electric has now been launched on the Polygon Mumbai testnet. It connected to the QuickSwap testnet to provide a DEX integration to complete the trading process. This allows the community to test the protocol before launching it on the mainnet. EasyFi also plans to partner with other DEXs to integrate with Electric.

For now, community members can test leveraged trading in the Electric Testnet version, starting with a test asset, xUSDC. Many more tokens and blockchains are expected to be added over the course of the test period.

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