Introduction

Levery is a compliance-centric gateway that empowers traditional financial institutions to harness the full potential of decentralized finance (DeFi), ensuring that they do so securely, profitably, and within the bounds of regulatory requirements.

Traditional Financial Institutions and DeFi Challenges

Decentralized finance (DeFi) offers significant opportunities for asset management and investment. However, these innovations come with some challenges, especially for traditional financial institutions.

Two primary concerns hinder broader adoption: the risk of impermanent loss due to toxic arbitrage and the lack of compliance mechanisms tailored to the regulated nature of these institutions. The anonymity inherent in existing DEXs and the gap in market price reflection exacerbate these issues, often resulting in suboptimal outcomes for liquidity providers (LPs) and deterring regulated entities from participating in the DeFi space.

Levery combines the Automated Market Makers (AMMs) features with a suite of compliance tools that include Anti-Money Laundering (AML), Know Your Customer (KYC) and Know Your Business (KYB) verification processes to address these challenges and deliver a sophisticated DeFi platform tailored for institutional use, capable of mitigating impermanent loss, and ensuring that LPs receive optimal returns on their investments.

Technical Framework

By integrating dynamic fee management, compliance enforcement through permissions, and price feed oracles to obtain accurate market prices, Levery smart contracts enhance DEX functionality, regulatory adherence, and operational efficiency. Core components such as the permission manager and dynamic fee structures ensure that only authorized users can engage in swaps and liquidity operations while aligning fees with current market conditions. Utilizing price oracles for precise data feeds and carrying out adjustments to the final pool prices, Levery mitigates impermanent loss and arbitrage risks, maximizing returns for liquidity providers. Additionally, the integration of the Levery DEX Safe App within Safe’s trusted platform ensures secure and seamless asset management.

Strategic Impact

By resolving significant barriers related to compliance and profitability in DeFi, Levery positions itself as a pioneering solution that enables financial institutions to safely and profitably engage in decentralized finance. With its robust framework and strategic vision, Levery enhances the operational efficiency of traditional financial institutions and promotes a more inclusive and transparent ecosystem.