yTrade

Not recommended for retail use

yTrade

yTrade is a leveraged stablecoin exchange. It enables users to borrow stablecoins with up to 1000x leverage. Four stablecoins (DAI, USDC, USDT, BUSD) are currently enabled as collateral. Users deposit one of the four stablecoins identified above and receive another stablecoin on margin. Leverage tiers are: 75x, 100x, and 1000x.

This is a unique product in the market and it enables users to conduct arbitrage trades whenever certain stablecoins are not pegged exactly to $1. For example: DAI is intended to be pegged at $1, however, occasionally in the past it has traded at $1.05. A user can deposit a stablecoin as collateral and borrow up to 1000x of his or her collateral, receive DAI, sell it for $1.05 each, use the proceeds to buy back the amount of DAI they borrowed and profit the difference.

This has significant implication in the broader DeFi space as stablecoins are frequently off their pegs, but some traders don’t possess sufficient capital to conduct profitable arbitrage trades.