Binance Futures Will Launch LEND/USDT Perpetual Contract With Up to 50x Leverage
Binance has announced that they will soon be offering traders access to up to 50x leverage on the token of Aave Protocol (LEND). In the announcement, the company stated that the LEND / USDT perpetual contracts will begin trading at 2020/07/23 09:00 AM and users will be able to select the leverage they want ranging from a minimum of 1x up to a maximum of 50x.
Binance has started to take a precautionary measure in order to ensure that there would no market manipulation post the launch of the Futures product. The platform would be implementing a “pricing limit of ±1% on the mark price” within the first 15 minutes of post-trading. This move may have been a result of the exchange being drawn to the drastic price rise of certain cryptos, after announcing support for them on its platform.
Aave (LEND) (also known as ETHLend) is a decentralized lending application (Dapp) running on the Ethereum Network that offers secure, peer to peer lending Smart Contracts. ETHLend is formed based on Ethereum’s blockchain platform, helping the loan and lending process to be carried out at any time, with instant completion time. It provides a loan service faster than any financial institution in the world. With ETHLend, borrowers and lenders do not need to know each other or through a third party, which helps reduce costs incurred to a minimum.
LEND tokens are used for fee reductions and will also be used for governance rights at the protocol level for future smart-contract updates. LEND tokens are also burnt from the fees collected from the Aave Protocol.
Since January 2020, Aave protocol also offers undercollateralized solutions: flash loans allow developers to borrow instantly and easily without any collateral.
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