The revolutionary world of decentralized finance comes with its own set of harsh realities. One of them being, the unpredictable nature of yields on lending platforms that are often reliant on real-time market demand and supply dynamics.
To offset the risk involved in permissionless lending, DeFi lending platforms typically require collateral that even exceeds the borrowed amount. Not only does this create an “artificial limit” on demand for loans, but it also leads to low yields that are exceeded by those offered on centralized platforms.
Moreover, while the premise of decentralized lending was meant to eliminate middlemen that benefit from arbitrage opportunities, the reality is that margin traders on centralized crypto exchanges determine much of the interest rates in DeFi.
Aurox is a cryptocurrency trading platform that harnesses its decentralized lending functionality to enable “4x margin lending” across the top exchanges. Through a synergistic combination of its two main product offerings – Aurox Trade and Aurox Lend – the platform seeks to eliminate the issues faced on decentralized exchanges and lending platforms.
Aurox Trade aggregates liquidity from major centralized and decentralized exchanges, creating a single order book and price feed for major trading pairs. Large orders will be split into smaller ones and sent to the lowest price centralized exchanges (CEXs) or decentralized exchanges (DEXs) to be executed. In this way, traders will have access to deep liquidity and efficient price execution.
Aurox Lend is a lending protocol being deployed on the Polygon chain, which lets borrowers earn competitive yields with a relatively low collateral requirement. These competitive yields will be enabled by the margin traders on Aurox Trade, who will be able to tap into Aurox Lend to place trades with up to 4x leverage.
A full-fledged trading system
Aurox’s integration with Polygon will pave the way for the platform to grow into a complete trading system with order routing and lending functionalities. The platform has integrated QuickSwap (QUICK), Polygon’s largest decentralized exchange, enabling access to the DEX’s massive liquidity and supply of tokens for Aurox traders.
QuickSwap has over $740 million in total value locked, making its role as a liquidity source in Aurox’s platform pivotal to the development of robust lending and trading ecosystem.
“The integration on Polygon will bring Aurox Lend to fruition. It will change the way lending and margin trading is done in crypto by completely decentralizing it. Our terminal has over 51,000 registered users and is constantly signing up hundreds of users per day. It’s time to take our project to the next level,” said a spokesperson from Aurox.
By using its decentralized lending platform as a source of funds for margin traders, Aurox expects to offer substantially higher interest rates. Based on the platform’s hypothetical interest yield calculations, Aurox expects to offer 14.2% APY on ETH deposits.
Moreover, an added advantage for traders using Aurox Trade is the ability to earn interest on unutilized or idle funds by rebalancing them through Aurox Lend.
The road ahead
While the integration with Polygon is undoubtedly a landmark event in Aurox’s expansion, the platform expects to keep its traction going by establishing multiple different partnerships of similar caliber in the months to come.
So far, over 100,000 orders have been placed on Aurox Trade, with an average of 10,000 orders each month. Both centralized and decentralized orders can be executed with ease from a mobile platform, with support for DEXes like QuickSwap and PancakeSwap (CAKE).
In the next twelve months, Aurox plans to develop its own DEX aggregator engine and facilitate automatic trading within the platform. Aurox will also introduce courses and one-on-one mentoring to cater to its growing user base in addition to increasing brand awareness.
“We recognize that the world’s best cryptocurrency traders simply cannot accept the high latency, high costs, and poor price execution of even the best-decentralized exchanges,” explained Aurox in its whitepaper.
“As such, we’ve engineered our platform to centralize our trading engine, completely eliminating the reliance on expensive and slow-performing smart contracts, and using a dense order book to support large orders instead of relying on volatile liquidity pools commonly used by automated market makers.”
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