CRYPTO NEWS & DATA SPACE

CRYPTO NEWS & DATA SPACE

Coming Soon: New Defrost V2

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A New Defrost V2 is Near

  • First, a scheduled rebalancing mechanism must be programmed in the contracts. This requires triggering a series of transactions on major DEXs — like Trader Joe — to maintain the leverage level within a certain range. However, such auto-rebalancing transactions might be front-run and could be vulnerable to sandwich bots, a constant issue when deploying large trades. These may lead to financial losses to users, a risk we are not ready to take.
  • Second, scheduled or temporary rebalancing may fail when facing an Avalanche network conjunction or during volatile times. This may bring additional risks to the whole leveraged token protocol, meaning the product would be at risk of liquidation.
  • Third, the profits and losses associated with leveraged tokens can be tricky to accurately figure out for new traders, due to their very rebalancing mechanism. Automatically re-leveraging during a profitable session and de-leverage during a deficit one make the tokens’ financial behavior potentially “unexpected”.

A Decentralized Leverage/Margin Trading Platform

What can you do with the Defrost leveraged trading platform?

Earning in the lending pools with supervaults

Taking part in margin/leveraged trading

Differences between leveraged tokens and margin trading

Liquidation

Rebalancing

User Experience

Profit and Loss

About Defrost Finance

Defrost Finance the platform behind the next generation stablecoin and provides remunerative investment opportunities. A fully fair launch, decentralized project, its aim is to change the world of finance for good.

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