Architecture of Decentralised Finance and Leveraged Trading: Risks, Rewards, and Impacts

Abstract

This research paper provides a comprehensive analysis of the integration of decentralized finance (DeFi) and leveraged trading, focusing on the potential opportunities and challenges presented by this fusion. Our proposed algorithm offers a novel approach to conducting leveraged trades on the Tezos blockchain, addressing the current gap in the market for an effective and user-friendly solution. By leveraging batch transactions and incorporating risk management features, the algorithm aims to reduce time and gas fees while providing users with increased control over their investments. The implementation of this algorithm in a user- friendly interface will further enhance accessibility and promote the adoption of leveraged trading in the DeFi ecosystem.