Levana (LVN) — price, overview & secure storage

What is Levana and who created it?

Levana Well-funded Perps is a protocol designed for perpetual swaps, which are leveraged trading contracts. The protocol aims to manage risk effectively and provide benefits to both traders and liquidity providers. It is built on the Injective network, offering a decentralized and secure platform for financial transactions.

Key features of Levana blockchain

For traders, Levana's solution ensures that all positions are 'well-funded,' meaning the maximum profit for each position is locked in advance. This approach eliminates the possibility of bad debt and insolvency, providing greater security and reliability. Liquidity providers, on the other hand, receive a yield for taking on the risk of market instability. They supply funds that act as collateral and earn a fee with a risk premium in return.

How Levana transactions work

The protocol addresses issues with existing perpetual swap models, such as the virtual AMM, which rely on complex mechanisms to maintain price stability. These models can be risky in volatile markets. Levana reduces the risk of contagion between different markets by separating different trading pairs and creating a decentralized market for liquidity. This separation also facilitates expansion to other blockchain networks. Overall, Levana's perpetual swaps protocol ensures fair settlement, minimizes risks, and allows for the development of additional financial protocols on top of tokenized positions.