Introducing the token that will power the Marginswap Protocol

3 min readJan 27, 2021


Over the past few years, many projects have come forth to offer decentralized margin trading exchanges. Yet all of these projects have faced the same issues: Liquidity, security, dangerously high slippage, and lack of token options, which are all extremely important factors to any trader who fears liquidations due to market volatility, security exploits, and slippage.

What if you could harness all the best parts of the biggest decentralized exchanges AND leverage trade on them? That is why we are building Marginswap. A decentralized margin and spot trading platform built on the back of DeFi Giants like Uniswap and Sushiswap.

By using Marginswap and the Marginswap protocol token, users will be able to margin trade with up to 5x leverage using the most popular DeFi exchanges available.

The Marginswap token will offer an array of exciting functions to benefit all users of the platform:

Governance: Like all great DeFi projects, token holders will decide the future of Marginswap through a DAO. Community members can vote on fee distribution, buybacks, addition and removal of margin assets, and much more. The possibilities are endless. We believe the community knows best and so it is the community of token holders who decide.

Margin trading and collateral assets: To a reasonable safe margin on any crypto-asset trading on any of the DEXs we support, the individual tokens will first need to build a reasonable margin reserve from lenders before it is opened for margin trading (or used for collateral). Lenders will be incentivized to contribute crypto assets to the reserve. Once enough assets are supplied for borrowing to the margin pool contract and the liquidity on any of the DEXs we support crosses our threshold, margin trading can begin. The same applies to our protocol token.

Trade rewards: A truly unique concept we are quite excited about. Not only will traders be able to use the smoothest margin platform available, but they will also be paid to play! The more you trade, the greater your reward shares. Marginswap will issue token rewards after every $X amount of trading volume. As an example, for every 1 million in trading volume on Marginswap, traders will receive tokens relative to their trading volume within that slot. If you traded $10,000 of volume, you would receive 1% of the Marginswap tokens awarded to users of that trading slot!

Liquidations: Margin liquidation calls have become extremely lucrative across the entire DeFi ecosystem. Yet an issue that persists is the fact that liquidators have no incentives to support the project itself. They don’t have skin in the game. By design, Marginswap will fix this concern by offering the fruitful liquidations of underwater trades exclusively to token holders. Token holders will be able to stake their tokens for the right to be liquidators.

These are just some of the exciting features that are yet to come. The Marginswap protocol token will be at the heart of the Marginswap ecosystem and as the platform evolves, so will the extra incentives for token holders. The ever-expanding DeFi landscape is revolutionizing the financial world as we know it. Marginswap is ready to take the reins and bring the safest state-of-the-art trading options to its users.

Are you ready?

All credit for this Intro blog goes to our community member with the telegram name @omegasalmon and Twitter name @cryptobink