What is V2?
The Defrost V2 is a new-generation decentralized leverage trading and yielding protocol built on Avalanche. It allows users to participate in leverage trading and/or earn leveraged yields in a trustless and user-friendly way.
Tha platform covers two main products, namely a decentralized leverage trading protocol and decentralized leveraged instruments, all powered by Super Vaults, similar to the yield-compounding vaults in Defrost V1.
The leverage trading platform will be launched first, while leveraged instruments will come at a later stage. In this section, we will mainly focus on the leverage trading platform.
The Defrost V2 model allows users to flexibly tailor their leverage trading strategies, according to their risk preferences, in a trustless and decentralized way, while trying to preserve a friendly trading experience similar to that offered by a centralized exchange.
Users may either contribute their assets in the lending pools, powered by well-established Super Vaults, to earn passive yields; or participate in leveraged trading by longing or shorting crypto-assets.
The Defrost V2 has been built to intensively cooperate with other DeFi protocols. Super Vaults, working as lending pools, are connected to AAVE, Benqi, and other yielding protocols to get extra passive yields, while the trading mechanism is interoperated with major DEXs like Trader Joe, to enhance the trading liquidity.