Liberty Finance DEX Features — Part 2
We have arrived at the second part of our Features blog articles, covering all the most important developments that will soon be at the fingertips of traders everywhere! In summary, Libfi DEX is a decentralized exchange with all the features you would expect from traditional centralized exchanges.
Being that we have too much information on these features to include in just one post, we have split them in two, to make it more manageable for our readers to fully understand.
Below we will be taking a detailed look at the features that haven’t been covered in the first part, but are just as important to the Libfi Ecosystem:
Portfolio Management
These tools can be used to track the performance of individual investments, evaluate the overall risk and return of a portfolio, and make decisions about buying and selling assets.
Some examples of portfolio management tools include:
》Performance tracking software, which allows investors to monitor the performance of their investments over time. This can include tools for tracking returns, volatility, and other metrics.
》Asset allocation, which helps investors determine the optimal mix of different asset classes in their portfolio. This can include tools for creating and implementing asset allocation models, as well as tools for evaluating the performance of different asset allocation strategies.
Overall, portfolio management tools are designed to help traders make more informed decisions about their investments, alongside facilitating their management more effectively.
Public Oracle — Public API
In the world of blockchain and cryptocurrency, an oracle is a third-party service that provides external data to a smart contract. This data can be used by the smart contract to make decisions, trigger actions, or otherwise interact with the outside world.
A public oracle is an oracle that is available to anyone who wants to use it. This means that any smart contract on the blockchain can access the data provided by a public oracle, without needing to establish a separate connection or relationship.
A public API, on the other hand, is a programming interface that allows developers to access the data or functionality of a particular application or service. In the context of blockchain and cryptocurrency, a public API might allow developers to access the data provided by a particular blockchain, or to interact with a particular decentralized application (dApp).
Overall, public oracles and public APIs are both tools that can facilitate greater interaction and integration between different blockchain-based systems and applications.
Lbfi Insurance
Liberty Finance DEX is an exchange that allows traders to take on larger positions than the amount of money they have in their accounts. This can be risky because if a trader loses on a trade and doesn’t have enough money in their account to pay the winner, they may not be able to pay.
To help manage this risk, Libfi has a margin system that requires traders to keep a certain amount of money in their accounts to support their positions in case the market moves against them. The amount of margin needed depends on the type of trade and the size of the position, and it changes in real time as the market moves.
If a trader doesn’t have enough margin in their account, they will be “liquidated”, which means their position will be closed and the money will be given to another trader who does have enough margin to take over the position.
But what happens if the price at which the losing trader is liquidated is different from the price at which the new trader takes over the position? How does the system make sure that the winning trader still gets paid?
The insurance fund
The insurance fund is a system that helps to protect traders on the Libfi exchange. It covers any deficit that may occur when a trader loses more money on a trade than they have in their account. This ensures that the winning trader gets their full payout and the losing trader does not end up in debt.
On other brokerages, traders are often still responsible for losses even if their account has a negative balance. But on Libfi, the insurance fund will be used to bring the account back to zero if it goes negative. This means that even if a trader’s position loses more money than they have deposited, they will not be in debt and will not need to deposit more money to cover the difference.
From the perspective of the winning trader, the insurance fund ensures that they get paid in full. And from the perspective of the losing trader, the insurance fund means that they will not be in debt and will not need to deposit more money.
What is the insurance fund not used for
The insurance fund is not used to reimburse traders for their losses. Its only purpose is to provide compensation for the difference between the bankruptcy price and the execution price of a liquidation order. Traders will not be able to recover any of their initial losses from the insurance fund, but they will be protected from having a negative balance.
The money for the insurance fund comes from a liquidation fee paid on top of the normal trading fee.
This fee is only applied to positions that are being liquidated. The liquidation fee is then added to the insurance fund, which increases its balance with each liquidation order, regardless of its size.
Lending / Borrowing
In the world of cryptocurrency, lending and borrowing refers to the practice of lending and borrowing digital assets, typically through the use of decentralized finance (DeFi) protocols and applications.
On a cryptocurrency lending platform, users can lend their digital assets to other users, typically in exchange for interest payments. This can be an attractive option for users who want to earn passive income on their assets, without having to sell them.
On the other hand, users who want to borrow digital assets can do so on a cryptocurrency borrowing platform. These users can typically borrow assets by providing collateral, such as other digital assets or fiat currency, to the platform.
This can be useful for users who need to borrow assets for a short period of time, or who want to take a leveraged position in a particular asset without having to buy it outright.
Overall, lending and borrowing in cryptocurrency is a growing area of the DeFi ecosystem and provides users with new options for managing and using their digital assets.
Liberty Finance Academy
The Libfi Academy is a learning platform that offers education and training on topics related to cryptocurrencies and blockchain technology.
Our academy will provide courses and workshops on a wide range of subjects, including:
》The basics of cryptocurrency.
》How to buy and sell cryptocurrencies.
》How to securely store and manage cryptocurrencies.
》How to develop and use decentralized applications (dApps).
In the future, we will aim to offer advanced courses on topics such as blockchain programming and smart contract development.
The goal of the Libfi Academy is to provide individuals with the knowledge and skills they need to understand and participate in the growing cryptocurrency and blockchain ecosystem.
Options / Derivatives Trading
Options and derivatives trading involves buying and selling financial contracts that derive their value from an underlying asset, such as a stock or a commodity.
These contracts give the buyer the right, but not the obligation, to buy or sell the underlying asset at a specific price on or before a certain date.
Investors use options and derivatives to speculate on the price of the underlying asset, hedge their investments, or generate income.
Conclusion
With this second article, we have covered the overview of the most important features that will make Liberty Finance DEX stand out and offer traders an experience like never before!
Libfi DEX is a true and honest decentralized exchange. This means that you have complete control over your finances, free to trade and move as you wish.
No strings attached, no hidden costs, it’s trading just the way it should be!
Each of these features will be covered individually in future editions as well, going more in-depth on the technical and operational aspects, so keep close and follow us for live updates.
Also, don’t forget to join our Telegram Community, where you can chat directly with the team!