# LIMORA PROTOCOL - one-pager
## Decentralized Leveraged Trading Platform with Automated Liquidity Matching

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## WHAT IS LIMORA?

Limora is a **decentralized platform** where you can trade cryptocurrencies with leverage (up to 50x) without giving up custody of your funds. Built on Base with integrated hedging capabilities on dYdX, Limora connects traders who want leveraged positions with liquidity providers who earn exceptional yields (75%+ APR) through our innovative concentrated lending model.

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## THE PROBLEM

**For Traders:**
- Centralized exchanges (CEXs) require custody of funds, creating counterparty risk
- High barriers to entry for leveraged trading (complex interfaces, minimum deposits)
- Limited transparency in how positions are managed and funded

**For Capital Providers:**
- Traditional DeFi lending offers low yields (2-5% APR)
- Liquidity mining rewards are unsustainable and dilutive
- No simple way to earn yield from trading activity without active management

**Market Gap:**
Existing solutions either compromise on decentralization (CEXs) or offer poor UX and limited functionality (DEXs). The leveraged trading market ($0B+ daily volume) remains dominated by centralized platforms.

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## THE SOLUTION

Limora creates a **peer-to-pool leveraged trading marketplace** with two distinct participant types:

### **1. TRADERS** (Position Takers)
- Open long/short positions on 300+ cryptocurrencies with leverage up to 50x on major assets
- Advanced risk management: stop-loss, take-profit, limit orders, automated liquidation protection
- Non-custodial: funds remain in user wallets until positions are opened
- Real-time P&L tracking with integrated TradingView charts

### **2. MATCHERS** (Liquidity Providers)
- Earn exceptionally high yields through concentrated lending mechanics (up to 75%+ APR)
- Deposit collateral into liquidity vaults (receive 70% of interest paid by traders)
- Choose risk profile: hedged (risk-neutral) or unhedged (directional exposure)
- Capital efficiency: Service ~9x more trading volume with same capital vs traditional lending
- Automated matching with trader positions—% passive income
- Withdraw available funds anytime (unencumbered capital)

### **Key Innovation: Concentrated Lending with Automated Hedging**
Limora's unique concentrated lending model allows Matchers to earn interest on the **full position size** while only providing **hedge collateral**—achieving ~9x capital efficiency vs traditional lending platforms. Combined with automated hedging on dYdX, this delivers **75%+ APR** with minimal risk, compared to 8-14% APR on conventional platforms. This creates exceptional yield opportunities backed by actual trading activity.

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## HOW IT WORKS

1. Trader deposits 10 USDC, requests 10x leverage on BTC LONG
2. Protocol matches with Matcher's liquidity vault (provides hedge collateral)
3. If Matcher is hedged: System opens SHORT BTC position + LONG hedge on dYdX
4. Trade executes: Trader has 100 USDC exposure, Matcher earns 5-20% APR
5. Interest accrues and is collected continuously (every 1-3 seconds)
6. On closure: P&L settled, collateral returned, interest paid to Matcher

**Backend Automation:**
- Automated matching engine pairs traders with optimal liquidity
- Real-time price oracles (CoinGecko, dYdX) ensure accurate execution
- Background jobs monitor for stop-loss, take-profit, and liquidation triggers
- Cross-chain coordination with dYdX for automated hedging

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## CONCENTRATED LENDING: THE CAPITAL EFFICIENCY BREAKTHROUGH

### **Traditional Lending vs Limora:**

**Traditional Platform:**
- Lender provides: $525 (full loan amount)
- Interest earned on: $525
- APR: ~12.6%

**Limora (Concentrated):**
- Lender provides: $75 (only hedge collateral)
- Interest earned on: $525 (full position)
- APR: ~88% (7x multiplier)

### **How It Works:**
1. **Trader:** Opens 8x leveraged position ($600 total, $75 collateral)
2. **Matcher:** Takes opposite position on Limora
3. **Matcher:** Opens leveraged hedge (8x) on dYdX with only $75
4. **Result:** Matcher earns interest on full $525 borrowed amount while only risking $75 in capital

### **Real-World Impact:**
With $10,000 capital:
- **Traditional lending:** $8,000 matched → 8.4% APR
- **Limora concentrated:** $72,000 effective matched → 75.6% APR

This 9x capital efficiency revolutionizes DeFi lending yields.

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## BUSINESS MODEL

### **Revenue Streams:**
1. **Entrance Fees:** 0.1% of position size (paid by traders)
2. **Interest Revenue Share:** Protocol captures 30% of interest paid by traders (70% goes to matchers)
3. **Liquidation Fees:** Penalties on liquidated positions (industry standard: 5-10%)
4. **Premium Features:** Advanced analytics, API access, institutional tools (future)

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## COMPETITIVE ADVANTAGES

| **Feature** | **Limora** | **CEXs (Binance)** | **DEXs (GMX)** |
|-------------|----------|-------------------|----------------|
| **Decentralized** | ✅ Yes | ❌ No | ✅ Yes |
| **Max Leverage** | Up to 50x | 125x | 50x |
| **Number of Assets** | 300+ crypto pairs | 300+ | 10+ |
| **Risk Management** | Automated | Manual | Limited |
| **Liquidity Provider Yield** | 75%+ APR (concentrated) | N/A | 15-40% APR |
| **Capital Efficiency** | 9x vs traditional lending | N/A | Standard pooled |
| **Hedging Options** | Automated (dYdX) | Manual | None |
| **Cross-chain Integration** | ✅ Yes | N/A | ❌ No |
| **Non-custodial** | ✅ Yes | ❌ No | ✅ Yes |

**Unique Differentiators:**
- **Concentrated lending**: 9x capital efficiency delivering 75%+ APR vs 8-14% on traditional platforms
- **Two-sided marketplace**: Aligns incentives between traders and liquidity providers
- **Automated hedging**: Risk-neutral yield for matchers via dYdX integration
- **Real-time interest collection**: Continuous collection every 1-3 seconds (not daily/weekly)
- **Sophisticated risk management**: Multi-layer protection (stop-loss, liquidation, minimums)
- **Transparent on-chain**: All transactions verifiable on blockchain explorers

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## TRACTION & ROADMAP

### **Current Status:**
- ✅ Fully functional platform with 7 core features
- ✅ 300+ tradeable cryptocurrency pairs (BTC, ETH, SOL, AVAX, and major altcoins)
- ✅ Concentrated lending mechanism delivering 75%+ APR for matchers
- ✅ Real-time interest collection (every 1-3 seconds)
- ✅ Automated backend infrastructure (continuous processing)
- ✅ dYdX hedging integration operational
- ✅ Mainnet live Q4 2025

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## TECHNOLOGY STACK

**Blockchain:**
- Primary: Base (Ethereum L2 - trades, collateral custody)
- Hedging: dYdX (automated offsetting positions)

**Architecture:**
- Frontend: Next.js, React, TypeScript, Chakra UI
- Backend: Node.js, Prisma ORM, MySQL database
- Smart Contracts: Solidity (for protocol logic)
- Oracles: CoinGecko, dYdX (price feeds)

**Security:**
- Non-custodial design (users control private keys)
- On-chain transaction verification
- Automated risk limits and circuit breakers
- Regular smart contract audits (planned)

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## WHY NOW?

1. **DeFi Maturation:** Users demand sophisticated tools matching CEX functionality
2. **Yield Crisis:** Traditional DeFi yields declining, need for sustainable income sources
3. **Regulatory Pressure:** CEXs facing scrutiny, users seeking decentralized alternatives
4. **Infrastructure Readiness:** Cross-chain protocols and bridges now mature enough for complex products

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## VISION

**Vision:**
Become the **leading decentralized leveraged trading platform** by offering institutional-grade tools with DeFi-native benefits: transparency, non-custody, and permissionless access.

**Core Values:**
- **User-First:** Intuitive UX matching centralized exchange quality
- **Transparency:** All protocol parameters, fees, and logic open-source
- **Risk Management:** Protect users from catastrophic losses via automation
- **Sustainability:** Business model aligned with long-term protocol health

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## CALL TO ACTION

**For Investors:**
Join us in democratizing leveraged trading.

**For Users:**
Try Limora. Earn yield as a Matcher or trade with leverage as a Trader.

**For Partners:**
Integrate Limora liquidity into your DeFi protocol. White-label solutions available.

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**Contact:**

Join our Discord: https://discord.gg/EmJ9tPsmgJ

Join our Telegram: https://t.me/limora_community

Follow us on X: https://x.com/limoraprotocol

Visit the website: https://www.limora.finance

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