Defrost Finance

How to Leverage Trade: a Guide

The Defrost V2 is a new-generation decentralized leverage trading, allowing users to take on leveraged positions on mainstream cryptos.
That is all fine.
But how does it work exactly?
In this article, we will cover the nitty-gritty details of trading with our new, ultra-decentralized protocol.
Read on!
Navigate to the trading page First of all, from our homepage ( head to the V2 protocol, by clicking the relevant icon on the top of the screen. (Figure 1)
A new page will open, here you can choose whether to deposit assets in our super vaults to earn yields from third-party platforms and trading fees (figure 2 in blue) or trade. (Figure 2 i read.)
Should you decide to deposit assets, please click on the “Earn” button to be redirected to the super vaults, which can be accessed as normal single-assets pools.
For leverage trading, click on the button by the same name and choose a relevant pair, as shown in figure 3. For this example, we will be trading AVAX / USDC.
Figure 1
Figure 2
Figure 3
Take on a position: the tools available
Once you have chosen a pair, a new window will open, with a chart of the asset’s chart and several options to choose from.
The chart comes in two formats, basic and trading view, as seen in Figure 4.
Selecting the “trading view” option, it is possible to use the full suite of tools provided by Defrost to dig into technical analysis. These include averages, oscillators, Bollinger bands and more, as shown in both the blue and red rectangles in Figure 5.
Figure 4
Figure 5
Connect your wallet
To be able to trade, you will need to connect your wallet first, by clicking on “connect wallet” as shown in figure 6. At the time of writing, Defrost has integrated both Metamask and WalletConnect, as well as Avalanche’s native extension Core. (Figure 7.)
More will follow suit.
Figure 6
Figure 7
Take on a position: how to
Once you have decided on a course of action, use the table on the right side to actually open a position, by selecting the desired parameters as shown in Figure 8.
They include whether you would like to long or short the assets (blue and red rectangles), the leverage (green triangle) and the positionsize. (Orange triangle.)
Several pieces of information are displayed when opening a position, including fees and liquidation price. - the price at which your position is automatically closed. See figure 10.
Approve in your wallet and then either long or short the asset by clicking on the two buttons shown in figure 9 and following the instructions provided by your wallet. Be aware that the blockchain will charge a usually small fee for this operation.
Figure 8
Figure 9
Figure 10
Monitor your positions
Once you have begun trading, your positions will appear at the bottom of the screen, beneath the chart. Among others, the profit and loss, as well the collateral ratio will be shown. (See Figure 11.)
It is warmly suggested that you routinely monitor it to take profits, avoid losses and steer clear of liquidation.
Figure 11
Happy trading!