Levana

Levana Finance, an acronym for “Leverage Any Asset,” is a decentralized finance (DeFi) protocol established in 2021. The platform is engineered to address inherent risks in the decentralized derivatives market, particularly the risk of illiquidity and market manipulation often seen in traditional perpetual swap models. Levana operates as a peer-to-pool onchain trading mechanism, which decouples trader positions from direct long-versus-short matchups, creating a more resilient trading environment.

The protocol’s core offering is fully collateralized perpetual swaps, allowing traders to speculate on the future price movements of assets without owning them. A key differentiator is its “well-funded” model, where the maximum potential profit for a trader's position is secured in advance by locking collateral from a liquidity pool. This design aims to eliminate the risk of insolvency and bad debt for the platform, ensuring that profits are always covered. Levana provides leverage of up to 50x on a variety of assets, including cryptocurrencies, foreign exchange, and commodities. Revenue is generated through trading fees, which are structured to be flexible and can be reduced if a trader sets an automatic take-profit on their position.

Originally developed on the Terra blockchain, Levana navigated the challenges following the Terra crash in May 2022 and continued its development, launching its v2 perpetual swap system in July 2023. The protocol has since expanded its presence across multiple blockchain networks within the Cosmos ecosystem, including Osmosis, Sei, and Injective, leveraging the specific advantages of each chain. This multi-chain strategy enhances speed, efficiency, and access to a broader user base. Governance of the Levana protocol is facilitated by its native token, LVN, which launched in December 2023. LVN holders can participate in the Levana DAO (Decentralized Autonomous Organization) to vote on proposals regarding market listings, blockchain deployments, and fee structures, shaping the future of the platform.

Keywords: perpetual swaps, decentralized finance, leveraged trading, DeFi protocol, crypto derivatives, blockchain, Cosmos ecosystem, liquidity providers, onchain trading, risk management, collateralized trading, delta neutral, governance token, LVN, DAO, Osmosis, Sei, Injective, peer-to-pool, financial instruments