KIP-59: Leveraged tokens to trade on Kwenta Exchange

Simple Summary

Toros Finance will build and run leverage tokens that use Perps v2 to attain the set leverage ratio, which will be made available to users via the Kwenta spot exchange.

Abstract

This proposal aims to make leveraged tokens available to trade within the Kwenta exchange. By working with Toros Finance, the Kwenta exchange will be able to offer leveraged trading to its users without the need for margin trading. This will provide traders with easy access to leverage without fear of being liquidated.

Motivation

Currently, only spot assets are available to trade via the Kwenta exchange. By offering leveraged tokens, the exchange will be able to provide its users with more options for high-risk, high-reward trading, which can increase trading volume and user engagement.

Specification

The leveraged tokens will be built and run by Toros Finance using Perps v2, to automate rebalancing of assets to achieve the set leverage ratio. The tokens will be available for trading on the Kwenta spot exchange.

Copyright

Copyright and related rights waived via CC0.