Recently, the U.S. Securities and Exchange Commission (SEC) filed an application to withdraw the lawsuit against the cryptocurrency exchange Coinbase, suspended the lawsuit against Binance and Tron, and notified ConsenSys, OpenSea, Robinhood, Uniswap and Gemini that it would close the investigation or case against these platforms. The SEC's change in attitude towards cryptocurrencies also provides "convenience" for DEX leveraged trading. Once the news was confirmed, XBIT (dex Exchange), which focuses on security and innovation, quickly became the focus of the industry with its non-custodial leveraged trading system. Data shows that XBIT's new users exceeded 100,000 per day, and the platform's total trading volume soared to US$32 billion.
Twitter : @XBITDEX
Why has DEX leverage become the new favorite in the wave of compliance?
The leveraged trading framework previously approved by the SEC clearly requires that the platform must meet the three major standards of asset transparency, independent risk control, and zero custody of user funds. XBIT (dex Exchange) became one of the first DEXs to pass the review due to its original "on-chain fuse mechanism" and third-party audit real-time disclosure system. Its leveraged products allow users to magnify their positions up to 50 times, and automatically clear through smart contracts to avoid the "pin-in explosion" disputes common in centralized exchanges.
The chief analyst of blockchain security agency CertiK pointed out that "platforms like XBIT (dex Exchange) that fully hand over private key control to users and put all leveraged positions on the chain truly realize 'risk visibility'." At present, XBIT's cold wallet reserve audit shows that it covers 100% of user assets, which is extremely rare among similar DEXs.
Twitter : @XBITDEX
Revealed: How do ordinary people use DEX leverage?
For novices, the biggest difference between DEX leverage and traditional CEX (centralized exchange) is autonomy. In XBIT (dex Exchange), users need to connect to a decentralized wallet first, and choose the type of collateral asset (supporting BTC, ETH and mainstream stablecoins). The system will calculate the loanable amount based on the real-time liquidity on the chain. For example, if you deposit 1 BTC as collateral and choose 10x leverage, you can borrow USDT worth 9 BTC for long and short operations.
"The key advantage lies in the utilization rate of funds," the DeFi researcher demonstrated in the live broadcast. "Assuming that the ETH price fluctuates by 3%, the profit can reach 30% under 10x leverage, and all liquidation processes are triggered by oracles to eliminate human intervention." It is worth noting that XBIT has specially set up a "leverage layered insurance pool", which can compensate users for up to 20% of their principal losses when extreme market conditions lead to liquidation.
Twitter : @XBITDEX
Platform data shows that the average liquidation price of its DEX leveraged products is 15% lower than that of CEX, mainly due to the real-time updated liquidity depth chart and early warning system. A day trader with the pseudonym "Bit Hunter" revealed: "The slippage cost of doing 5x leverage ETH band is 60% lower than that of centralized exchanges, which is particularly suitable for high-frequency strategies."
As more institutions enter the market through compliant DEXs such as XBIT, analysts predict that by the end of 2025, the scale of the decentralized leverage market will exceed US$500 billion. This drama of regulatory reform forced by technological innovation may have just begun.
