Platinum's 5x Margin Tool Makes Leverage Juicy

Evan  |  May 26, 2021

Not long ago, a new margin trading product for the crypto market named ‘5x Margin Tool’ was put into development. The Platinum Software Development company, which specializes in software for blockchains and decentralized finance (DeFi) projects, is working towards implementing the new tool.

The 5x Margin Tool is a platform that will provide all the necessary tools for margin trading with leverage on exchanges like PancakeSwap and Uniswap, while offering the best conditions. In its initial stage of operation, the platform will support such trading pairs as DAI/ETH, ETH/USD, UNI/USD and LINK/USD. Over time, the use of different blockchains will be made available.

Platinum will work with the Chainlink platform to provide the necessary oracles for estimating the cost of taking margin positions on trading platforms, with the help of its special tool.

The Main Idea Behind 5x Margin Tool

Today, margin trading is one of the most convenient and profitable mechanisms for making a profit. The general gist of margin trading is rather simple: a trader can trade an asset even if they do not have enough funds to open a trade, by using leverage in the form of a loan. The trader can make a profit that’s proportional to their leverage, changing the rate in a positive or negative direction.

The Main Idea Behind 5x Margin Tool

What is 5x Margin Tool?

The idea of ​​margin trading is at its peak and Platinum is creating a new product that will allow investors and traders to get the maximum profit out of trading and farming on DEXs like PancakeSwap, Uniswap, SushiSwap, 1inch and others. The Margin Tool will help users earn money in spite of huge Gas fees and API downtimes. The launch of the first version of the platform is scheduled for June 2021. In the future, the platform plans to integrate with various blockchains. Currently, such blockchains as Ethereum, Binance Smart Chain, Avalanche, Polygon, Solana, Huobi Eco Chain, MoonBeam, Darwinia, Polkadot and others are under consideration.

For the traders, the team will implement tools for realizing different trading strategies for long and short positions. Users can apply different leverage multipliers (up to x10), depending on the size of their deposit (number of project tokens they hold). The intuitive, easy-to-use interface allows you to open and close trades on a variety of platforms, enabling you to maximize your profits.

One of the main advantages of this platform is that investors who are not involved in the sale and purchase of assets will be able to become members of the liquid margin pool and receive interest for holding tokens.

What Are The Benefits to Users of the 5x Margin Tool Platform?

On the 5x Margin Tool platform, users and investors can receive both active and passive income. In the first case, profit is generated through trading; in the second case, by holding tokens on the platform. Thus, there are two types of participation that users can choose from when investing in 5x Margin Tool: trading and liquidity provision.

Benefits for traders 

The main advantage for a trader is the opportunity to increase their leverage in order to open a deal on various exchanges and receive a proportional profit. The amount of available leverage depends on the number of tokens they buy.

  • Beginner traders (locking 0 – 1,000 tokens) have leverage of up to x2.
  • Junior traders (locking 1,001 – 5,000 tokens) have leverage of up to x3.
  • Average traders (locking 5,001 – 20,000 tokens) have leverage of up to x4.
  • Mature traders (locking 20,001 – 50,000 tokens) have leverage of up to x5.
  • And only a Professional trader (locking >50,000 tokens) can take up to x10 leverage.
  • Benefits for liquidity providers 

    The main advantage of the platform for liquidity providers is the ability to send their tokens to the liquidity pool and receive interest for holding the tokens. Several liquidity pools with different parameters and levels of risk will be created. The required liquidity is loaned from a pool and given to traders as leverage so that they can open a leveraged position. This mechanism is similar to the Alpha Homora or Aave percentage pools.

    The Mechanism of the Platform and Its Interface Features

    The Mechanism of the Platform and Its Interface Features

    How 5x Margin Tool Works

    The Platinum developers have invested all their energy and experience into creating the best platform for margin trading — 5x Margin Tool. A simple and multi-functional interface is the main thing that was emphasized in the process.

    A special panel will display the amount of collateral, the size of leverage, the total amount to open a position and the liquidation threshold. The liquidation threshold is the percentage that will act as insurance and will be split between the liquidity provider and the trader in the event of a negative trade. A trader can also choose the pool from which they will take the missing amount and use the Swap button to quickly exchange currency on the selected exchange.

    After analyzing the prices, the Margin Tool will determine the liquidation threshold and the value of a given position and notify the user of a margin call. This technology allows users to liquidate a position in a timely manner while it has value.

    Also, in addition to opening and closing a position, traders can add a large amount of collateral before the closure of a trade. If the trader is sure about the profitable completion of a given trade, they can increase the trade volume after the trade has been opened, thereby increasing the potential profit.

    Utility of the Margin Tool Token

    The 5x Margin Tool maintains its own token that will perform a number of special functions on the platform:

    • Providing liquidity: users will receive daily charges for holding tokens in liquidity pools.
    • Farming: users will receive farming rewards in Margin Tool tokens.
    • Share of the proceeds from liquidated positions: token holders will receive a share of the profit from liquidated positions.
    • Buyback and Burn: this mechanism will reduce the number of tokens in circulation, thereby increasing their value.
    • Governance: users can participate in the governance of the platform and vote on proposals.
    • 5x Margin Tool And Its Competitors

      It is worth noting that the 5x Margin Tool platform also has a number of competitive advantages. For instance, no other platform distributes liquidation commission or platform revenue to its users.

      5x Margin Tool And Its Competitors

      What Makes Margin Tool special

      Thanks to the professionalism and unorthodox decisions of the Platinum team, 5x Margin Tool can become one of the most promising marginal services of 2021. The 5x Margin Tool platform is going to be launched very soon. To better understand what tools the platform has and how to use the token, users are invited to take part in the testing of the platform, which is scheduled for launch in June. All you need to do to participate in the testing is to contact the team on either the Twitter or Telegram chat groups and leave your application there or you can fill out this form.

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