Levana Finance: Earn 32-50% APR with BTC using Cosmos Perps

Levana Finance

Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned. DeFi Dad disclosed his team at 4RC have been investors in Levana's seed round since 2021.

Founded in 2021, Levana Finance was a promising team in the Terra DeFi community working on a decentralized perpetuals exchange. Despite all their progress prepping to launch, the rest is history when it comes to Terra. After the collapse of UST and Terra, Levana began rebuilding their product and vision on other Cosmos chains including Osmosis and Sei.

Recently, Levana shipped its long anticipated perps protocol and exchange in early July on Osmosis and then mid-August on Sei. Levana shares some similarities to the likes of GMX and aims to be the flagship decentralized perps trading platform of Cosmos.

Levana Finance

Here’s the key details on how Levana Perps work!

  • On Osmosis, you can long or short BTC/USD/ ATOM/USD, SEI/USD, and axlETH/USD with up to 30x leverage, plus OSMO/USD with up to 10x leverage.
  • On Sei, you can long or short ETH/USD or SEI/USD with up to 30x leverage. 
  • On both instances, liquidity providers deposit into isolated liquidity pools (ie BTC/USD or ATOM/USD) and those deposits are used by traders in the related markets as counter-collateral for their positions. 
  • In return, liquidity providers receive LP or xLP tokens that generate yield which comes from fees paid by traders. These are the APRs you see displayed for each liquidity pool.
  • Deposits are not risk-free. When traders win, counter-collateral is removed from the liquidity pool and LP/xLP tokens

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