Trading Method

BoostSwap uses AMM (Automatic Market Maker based on trust pools and on-chain borrowing, trading, and clearing contracts to make leveraged transactions on centralized exchanges safe, simple and fast. You can complete it with just one click of Swap to Long or short leveraged trading.

When you are doing a leveraged transaction, you will pay the borrowing interest, the gas fee of the BSC chain, the 0.2% leveraged transaction fee. It is free for the first month, and the transaction fee will be returned to all users, as follows: 70% of the leveraged transaction fee will be repurchase and burn BOST Token, 30% of the leveraged transaction fee will be put into the treasury.

After the trader/borrower deposits certain assets in the wallet, he can enter the DAPP transaction. You can choose the appropriate leverage according to your own risk preference. In the early stage, we support 1X-5X and choose the two assets to be exchanged to do long or short, the chain automatically borrows assets with set leverage from the trust pool, click Swap, and go to Pancakeswap trading.

Thanks to BoostSwap's innovative introduction of external market makers, such as the first phase of Pancakeswap, users can enjoy unlimited liquidity without worrying about insufficient liquidity and slippage tolerance.

For example: Take ETH and USDT leveraged trading as an example.

Do more. User A thinks that ETH will rise in the future and wants to buy more ETH, but there is not enough funds on hand, only 1000USDT, and wants to use leverage borrowing to do more ETH. He chooses 5 times leverage and clicks Swap automatically from the chain,4000USDT was borrowed from the trust pool, the current account totals 5000USDT, and he bought 2 ETH locked on the chain in Pancake.

If the price of Ethereum increases by 10%, user A wants to close the position at this time, just click to close the position on the "Record" interface, and then the ETH can be exchanged for USDT. This time the user can get 5500 USDT and repay the loaned 4000 USDT, After own principal 1000USDT, interest generated by borrowing, and transaction fee, that is, 5500-4000-1000-borrowing interest-transaction fee = user A's transaction income.

If ETH drops by 5% ,assuming that the liquidation threshold has not been reached, user A wants to close the position at this time, just click to close the position on the "Record" interface, and then the ETH can be exchanged for USDT, and the user can get 4750USDT , After repaying the 4000USDT of the loan, 1000USDT of the own principal, the interest generated by the loan, and the transaction fee, that is, 4750-4000-1000-borrowing interest-transaction fee = user A's transaction loss.

If ETH drops by 10% assuming that the liquidation threshold is reached, the liquidator,anyone on the chain, can liquidate and exchange ETH into USDT. At this time, 4500 ETH can be obtained, 4000 USDT for repayment of borrowed money, and liquidator rewards, assuming it is 5%, after the interest generated by the loan and the transaction fee, that is, 4500-4000-liquidator reward-interest generated by the loan-transaction fee.

Go short. User B believes that ETH will fall in the future, and wants to short ETH, but has insufficient funds, only 1 ETH, and wants to use leverage borrowing to short ETH. He chooses 5 times leverage and clicks Swap automatically from the chain.4 ETH was borrowed from the trust pool, the current account has a total of 5 ETH, and 5 ETH is sold in Pancake, assuming 12,500 USDT.

If ETH drops by 10%, and user B wants to close the position at this time, just click on the "record" interface to close the position, and then USDT can be exchanged for ETH. At this time, the user can get 5.555 ETH and repay 4 of the loan. One ETH, one ETHUSDT of one's own principal, interest generated by borrowing, and transaction fee are 5.555-4-1-borrowing interest-transaction fee = user B's transaction income.

If ETH has risen by 5%,assuming that the liquidation threshold has not been reached, user B wants to close the position at this time, just click to close the position on the "Record" interface, and then the USDT can be exchanged for ETH, and the user can get 4.76 One ETH, 4 ETH for repayment of the loan, 1 ETHUSDT for the principal, interest generated by the loan, and transaction fee, that is, 4.76-4-1-borrowing interest-transaction fee = user B's transaction loss.

If ETH has risen by 10%, assuming that the liquidation threshold is reached, the liquidator, anyone on the chain, can liquidate. If USDT is exchanged for ETH, you can get 4.545 ETH, 4 ETH for repayment, and liquidator reward, assuming it is 5%. After the interest generated by the loan and the transaction fee, it is 4.545-4-liquidator's reward-the interest generated by the loan-the transaction fee.