Simplifies the process of obtaining long leverage on $XTZ, using the Kolibri protocol.
Leverage simply refers to using borrowed funds to amplify your financial takes.
If you believed $XTZ is going to go up in price, how would you be able to take advantage of this conviction other than just buying $XTZ with your money? Borrowing more money and buying $XTZ with the borrowed money(/leverage). This is a common strategy applied throughout the history of financial systems.
Kolibri is a stable-coin system that lets you put up $XTZ as collateral, and borrow a stable-coin, $kUSD against it.
LevTez takes advantage of batch transactions and simplifies the whole process of obtaining leverage. The individual steps to obtain leverage through Kolibri would look like this -
- Deposit $XTZ on Kolibri.
- Borrow $kUSD on Kolibri.
- Swap the borrowed $kUSD to $XTZ on Quipuswap(or your DEX of preference).
- Deposit the swapped $XTZ back on Kolibri.
LevTez does all of the above for the user, in one-click.