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Launched last Friday, InfinityPools is a new DEX on Base that offers unlimited leverage and no liquidations.
How does it work?
To execute leveraged trades, InfinityPool traders take out loans in the form of concentrated Univ3-style AMM liquidity, as opposed to traditional stablecoin loans for margin trading. This is the core of InfinityPool’s unique liquidation mechanism: traders have the guaranteed option to sell their borrowed collateral back to the pool at a fixed price, no matter how much market prices fall (such as with a put option), limiting their losses to their initial deposits. .
For example, a trader wants to take a leveraged trade on ETH, so they borrow liquidity intended to protect against a 10% price drop. If ETH falls below the 10% threshold, they can simply return the borrowed ETH to pay off the loan, and traders cannot lose more than their deposit.
InfinityPools currently has two live pools – sUSDe/USDC and sUSDE/wstETH – with approximately $2 million in TVL on each pool. The former pool offers ENA rewards, while the latter offers LDO rewards.
