Ethereum Blockchain technology is expanding in terms of its acceptance and being employed in various sectors, the latest being the use of its smart-contracts for entering in the highly poised trading market through marginal trading and LENDROID is using this technology for providing a platform for lenders, borrowers and monitoring the values of assets and collaterals and other aspects of marginal trading for providing a wholesome and low risk management of the investments and loan payments.
WHY DECENTRALIZED MARGIN TRADING PROTOCOL?
Peer-to-peer exchange for ERC20 tokens being named as “ox” which can support a decentralized comprising of all current public exchanges like margin trading and lending.
LENDROID AND MARGIN TRADING
After the borrower has deposited the collateral and has borrowed the money below the allowed limit, order books are kept with which the trader interacts and calibrates and reflects on possible future positions. These active positions are kept in smart contract. This is called upon or checked time and again In cases like when the trader has to unload his/her position and interacts with the order book.
THE LENDER
Loan offers are broadcasted to all decentralized exchanges by the lender. The lender defines offer object with defining of parameters
• Interest rate and loan amount
• Expiration period of the loan
• Time period of the offer’s validity
THE RELAYER
On the lendroid platform the relayer is the first contact for the trader and the lender. Management of loan offers in done by the lendroid relayer which is an improvement from its ox counterpart. Relayer also plays a key role in creating a global, shared liquidity pool. the relayer records and relays the loan offers and he is incentivized with a fee in the Lendroid Support token (LST) beign paid only when the loan is availed and closed properly. Relayers have access to the entire lending pool but the protocol remains trust independent-
a. The authority to execute the transactions on behalf of the lender or margin trader.
b. The fee structure for the relayer once the loan is repaid.
THE MARGIN TRADER
Upon depositing a collateral, the trader opens a margin account, trader can now start trading and can only withdraw the collateral once he fully repays the collateral. In scenarios when he has profited or can repay the loan closing his accounts is just a procedure but if it underperforms he can’t free the collateral until he repays the loan and closes the account.
THE WRANGLER
Lendroid system’s unique entity which monitors margin-level commodities by tuning into all the on-chain event and identifying and monitoring the account from creation till it’s liquidated. They are the bounty hunters of the lendroid ecosystem who report margin-level account and are incentivized by these lenders.
Once identified the wrangler cannot absorb the collateral or liquidate the account, verified by the smart contract system an auction is triggered for control over the marginal accounts’ collateral.
THE LENDROID AUCTION AND WHY IT IS DONE
The wrangler that identifies the marginal account can trigger the auction function in the smart contract which then calls on the oracle that check the account’s marginal level acting as anti-spam feature.
After the commencement of an auction, a total of 3 minutes are allotted for various wranglers to submit their bids.
LENDROID SMART CONTRACT AND LST TOKENS
All the investments deposited are handled by the fund smart contract. The LST are caterers to the utilities and seamless functioning of the platform.
MARGIN TRADING AND THE TECHNOLOGIES OF THE FUTURE
The lendroid team has incentivized and decentralized all the aspects of margin trading, monitoring, investing and trading. Every trader can trade from a reliable decentralized platform, and the lenders can be assured of repayment through collateral deposited and relayers and wranglers can earn through auctioning and monitoring marginal accounts.
Website -https://lendroid.com/
Whitepaper - https://lendroid.com/assets/whitepaper.pdf
Telegram – https://t.me/lendroidproject
Twitter - https://twitter.com/lendroidproject
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