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Trading Perps with Nitron
Nitron supercharges your perp trading experience.
With the help of Nitron, traders can trade perps on Demex without depositing USDC.
Traders first need to deposit any collateral supported on Nitron to borrow USD or by minting USC (Carbon's stablecoin) and converting it to USD to start trading perps.
Steps to Deposit Collateral:
Enable 'Use all as collateral'
You can choose between USC or USD based on the amount available in protocol and the interest you'll pay.
Steps to Borrow USD:
- Under the 'Borrow' column, search for 'USD' and click on 'Borrow' and input the quantity of the USD you want to borrow.
Steps to Mint USC:
- Cross-Chain Flexibility: Nitron's cross-chain capability allows for the use of various assets as collateral.
- Leverage: By borrowing USD, traders can potentially leverage their positions to enhance gains.
- Permissionless: The process does not require permission, thus it's accessible to a broad user base without stringent requirements.
- Interest Rates: Borrowing USD or minting USC involves interest fees, which can reduce profitability.
- Liquidation Risks: If the collateral's value drops significantly, users may face liquidation, resulting in the loss of their collateral on Nitron.
- Market Risks: Trading perps is inherently risky, and the borrowed funds can amplify losses as well as gains.
Using Nitron to trade perpetuals on Demex offers a novel approach for those looking to utilize cross-chain assets and engage in leveraged trading. While there are clear benefits to this method, such as flexibility and the potential for increased profits, users must also be aware of the risks, including interest fees and liquidation dangers.
It is essential for users to conduct thorough research and consider their risk tolerance before participating in leveraged trading activities.