Opportunities with Leveraged Products in DeFi | HackerNoon

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Opportunities with Leveraged Products in DeFi | HackerNoon
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'Opportunities with Leveraged Products in DeFi' defi leveragedtrading

lenders who lend their tokens and receive interest in return; on the other hand, margin traders who deposit assets as collateral to borrow tokens from lenders to trade with leverageTransactions for margin trading are fully funded, unlike perpetual contracts, reducing position closure risk.

A clear example is if a trader craves 2 ETH, under the hood, this trader borrows USDC from lenders and buys 2 ETH on the spot market of one exchange, sells it on another exchange, and pays back the borrowed USDC and keeps with the margin obtained.

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