Econia Ecosystem Spotlight: Aries Markets
Meet the Premier Margin Trading Platform On Aptos
Introduction
Financial markets and their decentralized ecosystems can only operate efficiently if there are financial primitives developed to support them. Lending markets, also known as money markets, play a crucial role in allowing market participants to craft elaborate portfolio strategies and optimize capital efficiency.
Econia Labs is thrilled to welcome Aries Markets, the decentralized margin trading and lending protocol, on its order book-based ecosystem on the Aptos blockchain — Offering users a rich suite of services to enhance their on-chain investment strategies.
Aries Markets Product Suite
Borrow & Lending Platform
Aries Markets enables its users to increase the capital efficiency of their on-chain portfolio by enabling users to lend their assets out to other users and receive interest payments for doing so. All loans are transparent and over-collateralized, meaning borrowers cannot borrow more than the assets they choose to borrow against.
Aries Markets currently supports nine assets on its platform, with the varying Loan-to-Value (LTV) ratios provided below:
Understanding LTV Ratios: Loan-to-Value Ratio defines how much value can be borrowed against the asset deposited. For example, for every dollar of USDC deposited by the user — the user can borrow $0.80 against it.
To learn more about the protocol’s asset and lending parameters, please visit Aries Markets’ documentation here.
Margin Trading
A key reason borrowing and lending platforms are a critical primitive to decentralized financial markets is because they’re traditionally used by market participants to execute more complex trading strategies, such as:
- Shorting an asset: to bet on the value of an asset to decrease over time with leverage.
- Longing an asset: to bet on the value of an asset to increase over time with leverage.
- Leveraged staking: to increase one’s staking position, leveraging liquid staking tokens (stAPT).
Aries Markets already supports simple margin trading via its AMM Swap feature, but this feature does not provide its traders with the tools and order types they are they are accustomed to from centralized exchanges — Which is why Econia Labs is excited to integrate with Aries Markets, providing them on-chain order book infrastructure enabling a permissionless world-class trading experience.
Central Limit Order Book (CLOB) Margin Trading
Unlike Automated Market Maker decentralized exchanges, CLOB-based DEXs offer a trading experience similar to that of traditional venues like Coinbase Pro or Binance, providing users the ability to permissionlessly place trades from their non-custodial wallet
Users no longer have to constantly monitor their trading positions’ health or manually exit their positions for profit capture or loss conservation.
Through Aries Markets integrating with Econia’s order book infrastructure, Aries Markets users can now place the following order types to receive these benefits:
- Market Order
- Limit Order
Aries Markets users also benefit from tapping into the underlying aggregated liquidity of the Econia order book — which supports API integration for institutional trading firms’ systems.
To learn more about the Econia order book, please visit Econia Labs’ developer documentation, found here.
Conclusion
Aries Markets provides a crucial and fundamental defi primitive for the Aptos ecosystem with its lending and borrowing platform, enabling native margin trading for its users. By leveraging Econia’s order book infrastructure, Aries Markets users can now efficiently execute sophisticated trading strategies seamlessly.
As the backbone of Aries Trading, Econia fosters collaborations with key DeFi innovators, building a diverse, innovative, and decentralized ecosystem.
