LeverJ Review: Non-custodial derivative trading - #CryptoTrading

Published in Trading platforms · Labeled as Non-Custodial Trading ·

A mixture of DEx and a centralized platform so that the trading does not get sluggish when other folks play Cryptokitties.

LeverJ is a leveraged cryptocurrency derivatives trading platform.

The project is developed by people who were behind Coinpit, a fully trustless crypto futures exchange.

LeverJ does not fit into the no-ICO projects collection as it completed an ICO in November 2017 and a short public awareness airdrop at the break of November and December 2017. The total amount of $LEV tokens sold publicly and privately was almost 156MM LEV.

The way tokens are incorporated into the LeverJ ERC20 DApp mechanism are the LEV token being a share in the LeverJ network, reflecting its monetary value, and if staked it produces FEE tokens that are used to pay for trades at LeverJ.

The LEV token trades on OKEx since late January 2018 and the value of the token sale at the time of publishing is over 16MM USD. However, the tokens were sold in the ratio of 1 ETH to 3000 LEV meaning that at the current fiat rates of ETH and LEV the ICO investors are being at a loss.

The LeverJ team holds a percentage of the tokens, big part of which will be used to provide liquidity and support the platform operations.

Some of the people behind the LeverJ project are known old-timers from crypto voice chats and Slack groups - the CEO Bharath Rao, the community manager Alex Ward, the advisor Swapman. It is always good to see new products created directly by people from the community.

Now for the product. What is LeverJ aiming for?

Hybrid of centralized and decentralized exchange

Decentralized exchanges are not a new thing, there are several of them (EtherDelta for one). But as the team behind altcoin.io already pointed out, decentralized exchanges work but only in a slow and tedious way. Pulling off a more complex trading strategy is difficult when the platform doesn’t really work when you need it to work.

While altcoin.io is working on a spot solution utilizing the atomic swaps, some degree of centralized control would make the operation more efficient as well. As a matter of fact, both altcoin.io and LeverJ decentralize the trading itself but around the app there is a team of people (market makers? economists? certainly engineers, designers and support staff).

This kind of solution is very plausible even in the light of the recent crypto trading regulatory news as the key point for both spot and leveraged trading is the storage of customer funds - cryptocurrency trading platforms must be non-custodial.

LeverJ implements this for derivative trading on the Ethereum blockchain with smart contract that settles on-chain between the participants of each trade. The orderbook and matching engine are centralized and off-chain. This way the order processing speed will not depend on momentarily blockchain congestions. The only thing that will depend on that is the withdrawal of the funds from the order contract. That, again, can be done only by the owner of the cryptocurrency. The exchange does not have access to customer funds.

LeverJ Home  The Roadmap  Read the Whitepaper 

Addressing attacks

Unlike with traditional exchanges such as Bitfinex and BitMEX, in the non-custodial model a simple heist is not possible because there is no hot wallet or cold storage to drain. From the whitepaper:

For heists to be possible, the possibility for one person to control all coins in custody must be possible. Segregated accounts that only enable the depositor to withdraw only their own balance eliminate this possibility, since the attacker would now need the keys of most users of the platform.

The only possibility of a heist is user-by-user: there could be a malicious user on the exchange and depending on the exact solution of interacting with the exchange, there could also be poor OPSEC on the part of a regular user. Several variants of the user-by-user attacks (skimming) are explored in the whitepaper.

Recent news on LeverJ.

Our News section features LeverJ in the light of recent regulatory news from the SEC and Japan.

Category: Trading platforms · Label: Non-Custodial Trading · Author: Tradingfanbois (contact author)

 

Last added to Crypto Airdrops, Bounties & Opportunities
Airdropped Token or Opportunity Airdrop Date About the airdrop Link
$DOT Polka Drop NFT Raffle Live Polka City is a contract-based Polkadot, DeFİ and, NFT cryptocurrency investment platform. They are running a raffle now where purchasing a ticket gets you chance to win an NFT art gallery that pays weekly yield and other commission-generating prizes. Cost of the ticket is 1000 POLC, the main prize generates 1041 POLC per week (50% APY). join
Searching for PIZZA MAN on Phemex Until 22 May (The BTC Pizza Day) To promote their new asset management service, Phemex is opening a quest to search for the og guy who spent 10K BTC on a pizza (Laszlo Hanyecz). They are going to offer him, and 100 winners, to get 1 day of interests on 10k BTC in the Phemex Earn Crypto asset management program. Earn Crypto promises up to 10% APY. Yearly compound rate of 10% translates to about 0.03% daily rate, which could earn up to 3 BTC during that single day. make account on phemex and submit gleam form
Binance to launch NFT marketplace June 2021 If you have not already, join Binance with referral code atnet10perc for 10% lifetime kickback. join
CoinBurp NFT Airdrop Until 7 May Coinburp drops BURP NFT tokens for easy social media follows. It is a governance and utility token and non-custodial NFT app. You gain 10 $BURP tokens for joining our community. gleam form
$ARN token airdrop Until 9 May ARN tokens up for grabs for a set of 8 easy social media tasks. join
$XYM Token giveaway on Latoken Until 10 May Complete simple social media tasks and get a chance to win 1000 XYM tokens ($230) in the giveaway on LATOKEN. join
SafeCovid huge marketing bounty Live SafeCovid is running a vast campaign for all types of content marketing. Blogs, videos, social media - there are categories for all types of content. Submissions need to be posted in bitcointalk thread and recorded into Google Spreadsheets. bitcointalk
Trade tokenized shares of Coinbase on FTX Open The FTX crypto derivative exchange, quickly gaining recognition in the crypto community, added tokenized trading of Coinbase IPO. Loads of other tokenized legacy assets already available. FTX does not require KYC until your total lifetime withdrawals reach 1000 USD. (More about FTX here). see the markets
PYR social media campaign March 14, 2021 for 6 Months till August 14 2021. PYR runs a long social media campaign. You need to engage in various social media channels without mentioning the bounty. Rules in the sign up form. form
Opportunity: Zero fees on DeFi tokens on Bitstamp Until end of May 2021 You can now trade ZRX, MKR, KNC, DAI and GUSD at Bitstamp. Aa a bonus this DeFi-focused batch of cryptocurrencies comes with zero trading fees until the end of May. If you have an old Bitstamp account laying about, might be worth a shot to trade or arbitrage there for a few weeks now. Bitstamp
Blockchain Space Telegram Bounty Until June 2021 Blockchain Space runs a Telegram activity bounty. The most active users will be paid 50 USDT every 15 days. info