Flash Leverage — cheapest on-chain leverage powered by flash loans

Big (really big) news!

Dear CHFRiends, we’re back to give you another fabulous shiny equipment at your disposal, the trading tool that you can brag about 😉… and of course the very important crash course on how to utilize it.

With just a couple of clicks, with no complexities and no obstructions, we take you to the world of margin trading (after all, it is our mission to remove all the roadblocks to an ultimate DeFi ecosystem for our fellow CHFRiends).

In the last few months, the CHFRY team has been working tirelessly on the development of our latest signature tool, where you get to leverage your trades with the help of flash loans. Ladies and gentlemen, without further ado, introducing (drum roll): CHFRY’s Flash Leverage!

(Cough, cough) Now, you may decide to stop reading here, thinking that flash loans are way too complex for you and that this is not a trading tool for you, but wait! FEAR NOT! Flash loans simply serve as the underlying infrastructure. And all you do is press a button to dive into the margin trading world of wonders! Talking about one-click solutions 😉

Well, before we reveal the exciting parts behind our fabulous Flash Leverage, let’s do a simple rundown on the basics of leveraging and the type of trading that usually features leveraging options.

What is Leveraging?

Leveraging is a common investment strategy where traders borrow funds to maximize potential returns that would otherwise be impossible with the existing capital they have. When trades executed with leverage are done at the right time, it is possible for one’s earnings to be amplified multifold, making this an attractive route for seasoned traders. However, it does come with a snag, as while using this strategy, you also risk leveraging your loss. A double-edged sword, if you will, because if traders earn on a leveraged transaction, they’ll earn big. On the contrary, if they lose, losses are multiplied accordingly as well.

Where Does Margin Trading Come In?

Margin trading is one of the ways that allows the use of leverage by amplifying one’s trading position with borrowed money. The idea behind margin trading is in fact pretty straightforward: users open long and/or short positions for trades that would otherwise require much more capital than traders have in their wallets; they do so by borrowing funds via an exchange or a lending platform to engage in trades that will accelerate their earnings.

In order for a trader to enter a leveraged position and open an intended position on trade, s/he needs to provide the minimum amount of funds.

Let’s look at a simple example.

Leverage: Let’s say you have 100 USDC available in your crypto wallet. If you decide to set your leverage at 2x, you will have 200 USDC (100 USDC * 2) in total. Hence, to leverage your position at 2x, you would have to borrow an additional 100 USDC. As such, your resulting margin would be 100 USDC.

Margin Trading: Now, let’s assume you buy 2 ETH at a price of 100 USDC (with your 100 USDC and the borrowed 100 USDC). The following day, you sell your 2 ETH for 220 USDC (110 USDC/ETH), return your debt worth 100 USDC (+ some interest), and pocket 120 USDC. And just like that, you margin traded with a 2x leverage and doubled your profit (if you only had traded with your 100 USDC, the trade would have resulted in 10% profit, with borrowed capital your amplified your returns with 20% profit.

To sum up, when done right, traders who undertake margin trading investment strategy are able to reap multiplied rewards on borrowed capital.

To kickstart your leveraged trades on CHFRY, here are some of the terms you need to know:

1. Leverage: The amount of additional buying power a trader secures after borrowing funds to trade (usually expressed as a multiplier, e.g. 2x, 5x).
2. Margin: The borrowed funds used to leverage a trading position - the difference between the total investment capital and the loan taken out for leverage.
3. Collateral: The number of funds or an asset needed to secure a debt. In the event a borrower is unable to repay the loan in a stipulated time, this collateral will be forfeited to the lending party.
4. Liquidation: Another commonly used term - liquidation in investing happens when a trader does not have sufficient funds to maintain a leveraged trade. Existing positions are automatically closed once it reaches a pre-set liquidation level to prevent traders from unexpected, excessive losses.

Now that we’ve covered the basics, we’re happy to reveal our very own margin trading tool. Forget about complicated trading instruments and massive fees payable. We give you, one and only — Flash Leverage: Leveraging your trades in a flash, without knotty and complex endeavors.

Flash Leverage

Flash Leverage on CHFRY is a place where you can access supercharged leverage via flash loans on our all-in-one trading platform with the lowest fees on the whole, not only DeFi-wide but also crypto-wide, world.

The application combines flash loans with AMMs and on-chain lending protocols to provide a leveraged solution at record low fees, and most importantly, makes this magic happen in a single click.

➡️ NO funding rates.
➡️ NO platform fees.
➡️ NO custody of assets.
➡️ Just a simple 1-click solution for a fully decentralized leverage trading

Flash Leverage is live on Kovan Testnet. Try out today!

In today’s crypto space, there are several platforms that offer margin trading avenues for their users. However, we cannot deny that there are hefty fees associated with such platforms.

What’s more, the majority of such platforms are centralized exchanges, the very essence of which obstructs permissionless innovation and gives up the advantages of compossibility that DeFi offers.

Additionally, most of these platforms lack a one-click trading experience and still require separate transactions to be executed by users during the entire deposit/borrow and trading process. This makes current margin trading experiences on the market inefficient, inconvenient, and expensive.

Our mission at CHFRY is to advance financial inclusion and reassess the current crypto trading structure that is plagued with over-collateralization, capital inefficiency, and high fees. We aim to define a more community-focused strategy in order to empower the general DeFi community and make such tools readily available and accessible for everyone through enhanced security and record low fees.

Flash Leverage is the CHEAPEST on-chain margin trading platform enabled by flash loan services. CHFRY is here to land that big win for the Crypto community, creating a decentralized, accessible, efficient, and secure trading environment.

If what we’ve just said is right up your alley, check out the ins and outs of CHFRY’s Flash Leverage in a second part to this article — leverage on CHFRY, no pun intended, step by step to greater heights in your next trades.

Visit CHFRY Finance today and dig in on the tastiest yields in Cryptotown.

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