Proposal to Integrate FunctionX with Levana: Unlocking New Opportunities for FX Holders
We are excited to present a proposal for integrating FunctionX (FX) with Levana, one of the leading perpetual swap platforms built on Cosmos. Levana’s mission is to empower users to leverage any asset, and we believe that by integrating FX, we can unlock a host of new opportunities for the FunctionX community. This proposal outlines the benefits and potential of this integration and invites the FX community to vote on whether to allocate funds to open the FX market on Levana.
- Leveraged Positions with FX
By integrating FX with Levana, users will be able to open leveraged positions using their FX tokens. Leveraging allows users to increase the capital efficiency of their holdings, enabling them to trade with larger positions than their initial capital would permit. This means FX holders can use their tokens as collateral, open trades, and earn additional FX. This feature is designed to enhance trading potential and capitalize on market movements more effectively.
- Providing Liquidity in the FXUSD Market
FX holders will have the opportunity to add liquidity to the FXUSD market on Levana. By providing liquidity, users can earn market fees and benefit from trader losses, as the liquidity pool acts as counter collateral for traders opening positions. This not only improves market liquidity but also offers liquidity providers (LPs) a consistent income stream from trading activities. LPs play a vital role in ensuring market stability and depth, and their participation is incentivized through fees generated by the platform.
- Innovative DeFi Strategies and Risk Management
Integrating FX into Levana opens up numerous possibilities for deploying innovative DeFi strategies for FX holders. Users can manage risk, hedge their holdings, or engage in arbitrage opportunities across different platforms. Strategies like exploiting differences in funding rates or price discrepancies can yield profits while maintaining exposure to the underlying FX assets.
Community Vote: Deploying FX Liquidity
It is proposed that the FX community vote on deploying $100,000 in FX tokens as liquidity on Levana to seed market liquidity. Additionally, we propose pairing FX tokens with LVN on MarginX with an allocation of $50,000 in FX tokens.
Benefits of FX Integration with Levana for FX holders:
- Enhanced Capital Efficiency: Unlock the ability to leverage FX holdings, offering a significant DeFi utility for FX holders.
- Income Generation: Earn from providing liquidity in the FXUSD market by capturing market fees and trader losses.
- Strategic Opportunities: Access to new DeFi strategies for risk management, hedging, and arbitrage.
The integration of FX with Levana has the potential to present a unique opportunity to significantly expand the utility of FX in the DeFi sector. We look forward to welcoming the FunctionX community to Levana.
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Disclaimer: This poll is just a tool to get the sentiment around this proposal and it will NOT affect on-chain voting in any way. If your proposal is getting a good sentiment around the community, it might signal that the proposal is good to go to the next phase, otherwise, some modifications might be necessary.
- YES
- NO
