The revolutionary world of decentralized finance has its own set of harsh realities. One of them is the unpredictable nature of the profitability of lending platforms, which often depends on market demand and real-time supply dynamics.
To offset the risk associated with unauthorized lending, DeFi lending platforms usually require collateral that even exceeds the amount borrowed. This not only creates an “artificial ceiling” for loan demand, but also results in lower returns that exceed what is offered on key platforms.
Moreover, while the idea of decentralized lending was intended to eliminate intermediaries who take advantage of arbitrage opportunities, the reality is that margin traders on centralized crypto exchanges set most interest rates in DeFi.
Aurox is a cryptocurrency trading platform that uses decentralized lending functionality to provide “4x margin lending” on leading exchanges. Through a synergistic combination of two major product offerings – Aurox Trade and Aurox Lend – the platform aims to meet the challenges posed by decentralized stock exchange and lending platforms.
Aurox Trade combines liquidity from the large centralized and decentralized exchanges, and creates a single order book and price flow for the large trading pairs. Large orders will be divided into smaller orders and sent to centralized exchanges (CEX) or decentralized exchanges (DEX) at the lowest prices for execution. In this way, traders will be able to access high liquidity and efficient price execution.
Aurox Lend is a lending protocol implemented in the Polygon chain that enables borrowers to achieve competitive returns with relatively low security requirements. This competitive profitability will be provided by Aurox Trade margin traders, who will be able to use Aurox Lend to make trades with up to 4x influence.
Complete trading system
Aurox’s integration with Polygon will pave the way for transforming the platform into a complete trading system with order routing and lending opportunities. QuickSwap (QUICK) is integrated into the platform, Polygon’s largest decentralized exchange, and provides access to DEX’s huge liquidity and token supply for Aurox traders.
QuickSwap has a total closed value of over 740 million dollars, which makes the role as a source of liquidity on the Aurox platform crucial for developing a robust lending and trading system.
“Integration with Polygon will pay off on Aurox Lend. This will change the way cryptocurrency lending and margin trading will be decentralized. Our terminal has over 51,000 registered users, and hundreds of users are constantly registering every day.” A Aurox spokesman said it was time to take our project to the next level. ”
More information about AUROX here
By using the decentralized lending platform as a source of funds for margin traders, Aurox expects to offer significantly higher interest rates. Based on calculations of the hypothetical percentage return on the platform, Aurox expects to offer 14.2% annually on ETH deposits.
Furthermore, an added benefit for traders using Aurox Trade is the ability to earn interest on unused or unused funds to offset through Aurox Lend.
the way forward
While the integration with Polygon is undoubtedly a significant milestone in Aurox’s expansion, the platform expects to maintain momentum by creating several different partnerships of the same caliber in the coming months.
Currently, over 100,000 orders are placed on Aurox Trade, with an average of 10,000 orders per month. Both centralized and decentralized commands can be easily executed from DEX-enabled mobile platforms such as QuickSwap and PancakeSwap (CAKE).
Over the next 12 months, Aurox plans to develop its own DEX aggregator engine and simplify automated trading on the platform. Aurox will also offer training sessions and one-on-one mentorship to meet the growing user base as well as increase brand awareness.
“We understand that the world’s best cryptocurrency traders simply cannot afford the high delays, high costs and low prices of even the most decentralized exchanges,” Orox explains in his White Paper.
“So we developed our platform to centralize our trading engine, completely eliminating the need for slow and expensive smart contracts and the use of a tight order book to support large orders instead of relying on the volatile liquidity pools commonly used by automated market makers.”