The Future of Leveraged Trading on Blockchain

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4 Jun 2024

Authors:

(1) Johannes Rude Jensen, University of Copenhagen, eToroX Labs (johannesrudejensen@gmail.com);

(2) Victor von Wachter, University of Copenhagen (victor.vonwachter@di.ku.dk);

(3) Omri Ross, University of Copenhagen, eToroX Labs (omri@di.ku.dk).

Abstract and Introduction

1 Literature Review

2 Methodology and Artefact Requirements

3 The Implementation and Integration of the Artefact

4 Artefact Evaluation

5 Discussion

6 Conclusion and Future Work, and References

6 Conclusion and Future Work

6 Conclusion and Future Work In this paper, we present ongoing efforts towards the research question: To what extent can blockchain technology improve the execution of a leveraged trade? Utilizing the DSR methodology we demonstrate the implementation and initial integration of a digital artefact, utilizing the Dai Stablecoin system to deterministically automate the processes required to monitor and liquidate a leveraged position. The initial attempt at integrating the artefact into a traditional exchange operation presented several necessary compromises required to maintain the integrity of the secured exchange environment.

Future work on this artefact will seek to bridge the chasm between permissionless blockchain technology and the hardened enterprise environment. Our work will examine the feasibility of exposing the browser-based wallet API to internally managed hot-wallets alongside an examination of whether the recursive operation can be conducted utilizing internal liquidity.

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This paper is available on arxiv under CC BY 4.0 DEED license.