Dharma Lever Cryptocurrency Lending Platform Looks to Improve High Volume Margin Trading
Dharma is a startup company that deals with the development of borderless lending products for use on the blockchain. Early this week, the company announced plans to introduce a product that it referred to as Dharma Lever. This is going to be a trustless service that will mainly be used to access margins in high volume trades.
This will be done using the protocol developed by Dharma, and which is based on the smart contracts infrastructure. The announcement was made via popular social media messaging platform–Twitter.
In the announcement, the company stated that Dharma Lever would make it easy for users to access margins in high volume regardless of where they are based in the world. The access would be instantaneous and affordable. It also requested all developers and individuals who were interested in becoming Alpha partners or in receiving early access to request an invite.
Additional Information on Dharma Lever
According to the press release, the new product was intended to assist fill in the existing infrastructural gaps. It would make it easier for traders to trustlessly lend as well as borrow cryptocurrency assets in big volumes.
Its system has been designed to make it easier to bypass the numerous limitations that are to be found on the traditional singular exchanges in terms of security and liquidity limitations. By doing this, it would help create a debt relayer network that makes it possible to create an open loan and credit environment.
In general, the Lever will simplify the process involved in locking up collateral as well as in getting the margin funds. The process is instant and ensures that the transactions can easily be moved across the web. According to the official announcement, each trader will be in a unique position to customize the terms of their loans including the duration, collateral and the kind of asset to be placed.
The platform went on to state that its system is going to be compatible and can be used with any cryptocurrency wallet across the globe. As such, users will not need to have specialized web3 or MetaMask wallets to use the platform. The company also announced that plans are underway to create a portfolio management system that will make it easy to track taxes as well as funds.
Currently, the Dharma level is only compatible with the ETH-based tokens. However, the firm has announced that it will eventually start expanding in order to include other major cryptocurrencies like Bitcoin.
The team behind Lever is in search of institutions that it can partner with in their quest to complete the ongoing alpha project. At the moment, the Dharma team is specifically looking for institutional partners that are in a position to trade as much as $100,000 in form of ETH based assets.
What Is the Dharma Protocol?
This is an open-sourced protocol that can be used for generic tokenized debt agreements. The protocol can be used to issue, underwrite, and administer debt agreements in the form of tradeable cryptographic tokens.