Market Demand Pushes Trading Volumes on DEX Level Finance to Over $1B
The decentralized exchange was launched just over two months ago and earned lifetime fees of $1.2 million.
Feb 16, 2023 at 12:07 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/Z26K3FBPEZBTXBAJWJ23YWUQRA.jpg)
(Kanchanara/Unsplash)
Trading volumes on BNB Chain-based decentralized finance exchange Level Finance have crossed over $1 billion in a little over two months since its December launch – suggesting high interest from users for such products.
The platform has earned fees of over $1.2 million since inception, with a portion of these distributed to Level’s users as an incentivize for using the service. As such, Level holds over $16 million in locked tokens on its platform as of Thursday. Nearly 50% of this is held in binance USD (BUSD), a dollar-pegged stablecoin, and BNB.
Level allows users to trade financial derivatives, such as futures on bitcoin (BTC) and ether (ETH), with low slippage and cheap fees. It also offers high leverage of up to 30 times the initial collateral.
Bitcoin futures on Level crossed $12 million in trading volumes in the past 24 hours, data from the platform show. Futures of BNB Chain’s native BNB tokens saw $11 million in volumes while ether futures recorded $7 million in volumes.
That activity came as crypto market capitalization rose 8.8% as bitcoin reached six-month highs of $24,700.
Level’s two tokens each grew in price in the past 24 hours. Utility token lvl (LVL) surged 44% to $8.6, while governance token lgo (LGO) rose 20%.
Lvl is earned via participation on the platform or earned by supplying liquidity. On the other hand, lgo holders can vote on major decisions relating to the platform including fees, product offerings, engineering, and treasury are decided by the community via voting on the Level DAO.
Decentralized exchanges (DEX) rely on smart contracts to provide trading and lending services to users, who do not require to submit any personally identifying information or know-your-customer documentation before trading.
Such products have gained a huge following in crypto circles – the likes of Polygon-based DEX Gains Network crossed $25 billion in trading volumes in January, less than a year after its launch, as CoinDesk reported.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/s3.amazonaws.com/arc-authors/coindesk/6c6bb5af-692c-4fcf-9f8b-a75d0549effd.png)
Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.