Limitless
  • Intro
    • Why Limitless
    • Vision: A Unified Liquidity Market For Every Digital Asset
    • Participants
      • Liquidity Providers
        • Rehypothecation of Liquidity
        • Withdrawal Limits
        • Covered Call Strategy
      • Leverage Traders
    • Premium Model
    • limWETH
    • Example Trade
    • ❓FAQ
    • Audits & Security
  • User Guide
    • Liquidity Providers
      • Advanced LP
      • Simple LP
    • Leverage Traders
      • Adding and Opening Positions
      • Managing Positions
    • Fees
  • Incentives and Tokenomics
    • LMT(Points)
    • Arbitrum Launch Campaign
    • Referrals
    • $NZT
    • $LIMIT
  • Advanced
    • Providing Liquidity
    • Determining which ticks to borrow from
    • Borrowing/Repaying Liquidity
    • Rebalancer Incentives
    • Premiums
    • Oracle Free
    • Applications
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  • Limitless Leverage Facility: A Unified Liquidity Hub for permissionless spot/lending/derivatives
  • Fragmented Liquidity is expensive
  1. Intro

Vision: A Unified Liquidity Market For Every Digital Asset

PreviousWhy LimitlessNextParticipants

Last updated 1 year ago

Limitless Leverage Facility: A Unified Liquidity Hub for permissionless spot/lending/derivatives

DeFi currently faces the challenge of liquidity fragmentation across different financial activities such as trading, lending, and various derivatives like options and perpetual futures. A consolidated liquidity hub that seamlessly integrates lending, spot trading, and derivative trading would significantly enhance market efficiency.

Presently, DeFi operates in silos: a user looking to swap assets typically trades against an AMM protocol, a borrower seeks leverage from a dedicated lending pool protocol, and traders interested in options or perpetual futures turn to specialized derivatives protocols.

This fragmented approach is a prime example of market inefficiency and the increased cost of financial activities from fragmentation is borne by all participants.

Fragmented Liquidity is expensive

This form of fragmentation makes it more expensive to access liquidity for both traders and borrowers. With liquidity being more scarce in a single liquidity venue, a trader would pay more in slippage, and a borrower would pay more interest(or simply might not be able to borrow at all). This is particularly true for long-tail assets, where liquidity is generally hard to source.

  1. trade spot

  2. borrow/lend

  3. trade with leverage

  4. trade options

  5. trade insurance

with any tokens, all within the same liquidity hub.

What Limitless presents is a system that to unify tradable, lendable, and derivatives liquidity which ultimately lowers the cost of a whole suite of financial products. Limitless is a new dependency-free and trustless financial primitive where people can

recycles existing spot liquidity