Nuo: Introducing Non-Custodial Margin Trading with 3x Leverage
Bitcoin’s killer app is now on Ethereum, powered by Uniswap and Kyber. This has been over 6 months in the making and finally we are excited to announce that Non-Custodial Margin Trading is now live on Mainnet. Click here to try now
Update: After our public discussion with Vitalik on Twitter and having a surge in volume, we have decided to reduce our leverage from 5x to 3x. This is in the interest of our users and to ensure that on-chain liquidations are less risky.
Non-Custodial Margin Trading enables users to Long or Short Bitcoin, Ether, Maker and few select ERC20 tokens with upto 5x leverage using smart contracts, without taking custody of your funds. See it live in action below:
The Many Firsts 🏆
1. Under-Collateralised Loans
This is now the first instance of under-collateralised loans (with upto 5x leverage) on Ethereum mainnet along with a frictionless user experience powered by reserve pools, contract based accounts and meta transactions. We believe this would be one of the biggest enablers of Web3.0 adoption globally.
2. Long & Short Bitcoin
Did you ever imagine you would be able to long or short Bitcoin using Ethereum smart contracts with verifiable transactions? Well, it’s here. This is the first ever instance of bringing Bitcoin’s killer app (think Bitmex) on the Ethereum blockchain and making it non-custodial.
3. Uniswap for Margin Trading
Uniswap is a breath of fresh air in the world of DEXs and we are excited to bring more liquidity on Uniswap and higher returns for Uniswap pools. Margin trading on Nuo Network is powered by Uniswap and Kyber. So every time you place a margin trade, Nuo debt reserves provide leverage and Uniswap or Kyber fulfil the trade order.
4. Margin Trading for the Rest of Us
We are making it super easy for anyone to long or short tokens without any prior experience of margin trading or derivatives. No order books, No complicated charts and most importantly automated margin calling to Stop loss and Take Profit.
Use Case Examples ⚡️
1. Short ETH 📉
If you are locking ETH in Defi contracts (Ex. Augur), then your locked ETH is exposed to price volatility. A fall in ETH price can nullify your gains even though you took the right bet. De-risk your bet from price volatility by opening an equivalent 1x short on Nuo and keep those gains.
2. Long ETH 📈
A major use case for MakerDAO CDP holders is to go long on ETH. MakerDAO requires high collateral, provides low leverage (0.33x on average) and needs minimum 6 onchain transactions (including exchange). You can now go long on ETH using Nuo Network with 5x leverage in a single meta transaction.
How it Works ✨
You can get started by signing up and connecting your wallet (optional). You will be allotted a smart contract based trading account where you can send funds to use as collateral. Once funds are added, enter the collateral amount and leverage (upto 5x) you want to trade with.
Based on debt reserves available, you would see various options to long or short tokens across DAI and ETH market. Choose a margin trade (Ex. Long ETH 2x) and select trade duration, stop loss % and take profit %. Sign this order with your account password or a connected wallet. Boom! you just placed your first ever Non-Custodial Margin Trade.
Demand & Supply 📊
Defi isn’t just another buzzword anymore. It’s here and now. Decentralised lending is currently the biggest use case in Defi with huge supply of tokens for earning interest and very low demand for loans in comparison. Due to this low demand, the returns on tokens supplied by lenders is low (0.5–2% APR on average).
We believe one of the biggest reasons for this is excess collateral required in the current lending models. We expect a massive demand for under collateralised loans which will reduce the demand/supply gap and increase returns for lenders.
We are a small team of 6 people building for the world and we are excited to show the crypto community, what a small and focused team passionate about what they are building can achieve. We look forward to your support in this journey 🙏