Loan & Borrow System

It allows for on-chain perpetual futures trading on Alephium through decentralized Loan and Borrow. Traders can take long or short leveraged positions while liquidity providers earn interest on their deposited ALPH.

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1. Loan Pool mechanism

The Loan Pool is at the heart of the Vordex perpetual trading system. This is where users deposit ALPH tokens as collateral so that they are made available for borrowing by traders looking to take out leveraged positions on the platform. How It Works When you deposit ALPH into the Loan Pool: ✔️ Your ALPH becomes available to be borrowed by traders. ✔️ You earn interest proportional to your share in the pool and its current utilization. ✔️ You may withdraw funds at any time, so long as they are not currently in active use.

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Collateral Usage by Traders

When a trader opens a perpetual position:

• A portion of their collateral is locked to secure the trade.

• Locked collateral cannot be withdrawn until the position is closed.

• Unused collateral remains available for new trades or withdrawal.

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2. Benefits for Liquidity providers

✔️ Earn Interest – Passive yield from traders borrowing your ALPH. ✔️ Support the Trading Ecosystem – Your funds power decentralized leverage trading. ✔️ Withdraw Anytime – As long as the liquidity is unused, it’s freely withdrawable.

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3. Risks to consider

⚠️ Market Volatility – Utilization rates can affect returns. ⚠️ Smart Contract Risk – As with any DeFi platform, vulnerabilities may exist. ⚠️ High Utilization – If most of the pool is borrowed, your funds may be temporarily locked until repayment.

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4. Minimum liquidity requirements for Perpetual pairs

To ensure fair and efficient perpetual markets, each trading pair must meet the following conditions before activation:

✔️ 100,000 ALPH in the liquidity pool Provides enough depth for smooth trade execution and low slippage.

✔️ 50,000 ALPH in the loan pool Ensures sufficient liquidity for margin trading and leveraged borrowing.

📌 Once these conditions are met, the pair is automatically enabled — no manual listing or whitelist process is required.

This model ensures an open, decentralized environment, where liquidity availability determines market activation, not centralized control.