back20 Oct 20232 min read
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Levana: A DeFi Game-Changer I Consumer Spotlight

In the ever-evolving DeFi landscape, Levana stands out as a pioneer in perpetual swaps. Launched in September 2023, Levana offers a reliable trading platform for users and liquidity providers. Levana strives to ensure fair deals, reduce risks, and create innovative financial tools through tokenized positions.

Currently available on three blockchains (Osmosis, Sei, Injective), Levana has grown significantly in total traded volume ($200M) and user base (3000+).

Let's delve into the details of this compelling case study.

Levana Perps: Secure and Reliable

Levana was designed to tackle two critical challenges prevalent in other perpetual platforms.

Firstly, the protocol addresses liquidity risks by implementing the concept of locked liquidity, ensuring fully collateralized positions and conducting on-chain liquidations.

Secondly, it eliminates market manipulation risks by utilizing the spot market price for entry and profit calculations, avoiding complexities associated with internal mark prices.

Innovative Features Driving Stable Trading

  1. Liquifunding: Ensures adequate liquidation margins for all open positions, safeguarding traders and liquidity providers during market fluctuations.
  2. Price Updates and Cranking: Regularly updates prices through a permissioned entry point, followed by a 'crank' process that triggers necessary actions based on price fluctuations.
  3. Safeguards against Staleness and Congestion: Prevents delayed price updates and congestion, reducing the exploitation of price discrepancies.
  4. Delta Neutrality and Liquidity Pool: Funding payments and a delta neutrality fund maintain a balanced protocol for liquidity providers. The liquidity pool allows users to deposit collateral, receive LP tokens, and participate in fee-sharing mechanisms and liquidity incentives.

Managing Volatility for Sustainable Growth

Levana Perps emphasizes potential risks, especially during extreme market movements. While the platform implements various risk-mitigating mechanisms, it highlights the need for prudent risk management.

Levana Perps effectively addresses critical issues in traditional perpetual platforms, fostering a secure and stable trading environment for traders and liquidity providers alike.

Levana is #PoweredByPyth

By integrating Pyth Price Feeds, Levana enhances the trading experience for its users, ensuring an unparalleled level of flexibility and responsiveness. With access to over 350 real-time price feeds, Levana users can benefit from timely and accurate market data.

Explore the collaboration of Levana and Pyth Network by visiting their website.

You can also listen to the Twitter space which happened on the 18th of October to learn more about how Pyth is a game changer for Levana and the entire Osmosis ecosystem.

We can’t wait to hear what you think! You can join the Pyth Discord and Telegram, follow us on Twitter, and be the first to hear about what’s new in the Pyth ecosystem through our newsletter. You can also learn more about Pyth here.

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