Understanding Nolus Asset-Backed Margin Leverage

Nolus is an on-chain margin leverage protocol that empowers users to amplify their crypto exposure by borrowing additional funds to open larger positions. This strategy enables the potential for greater returns without putting the user's entire capital at risk. Unlike many other on-chain leverage platforms, Nolus utilizes real, asset-backed positions rather than synthetic derivatives or oracle-based trading, thereby reducing counterparty risk and aligning more closely with the underlying value of the assets.

Users begin by depositing collateral. Based on this initial deposit, Nolus lends additional funds—offering up to 2.5x leverage (or 150% of the deposited amount)—to enable larger market positions. The combined value of the deposited and borrowed assets is then converted (swapped) into the desired asset and secured within a dedicated smart contract.

Borrowing is offered at fixed interest rates, which are typically lower than those found in other DeFi lending protocols. In addition, Nolus does not charge extra fees on margin positions, making it uniquely cost-efficient. These low borrowing costs, combined with Nolus' asset-backed approach, make it highly attractive for long-term position holding and a compelling alternative to traditional spot trading.

Through cross-chain integrations with liquidity hubs like Osmosis and Astroport, Nolus ensures efficient access to assets and seamless trading across multiple blockchain networks.

A Long strategy is ideal when a user expects an asset’s price to rise.

Example:

If ATOM increases in value, the position appreciates while the loan amount remains fixed in USDC. The user can later repay the loan and keep any gains from the asset’s price growth.

A Short strategy is used when a user anticipates a decline in an asset’s value.

Example:

Because the loan is denominated in the borrowed asset, users benefit directly from the asset’s depreciation.

Beyond speculation, Nolus can be used as a tool for hedging—managing risk in volatile markets. For example, a user holding a large amount of ATOM might anticipate short-term downside risk but prefer not to sell their holdings. Using Nolus, they could borrow ATOM and execute a Short position, effectively protecting themselves against potential price drops. This way, any losses in their spot holdings may be offset by gains in the Short position.

Likewise, users who expect long-term appreciation but want to stay liquid can use leverage to open Long positions while preserving capital for other opportunities.

Thanks to its low-risk structure, fixed rates, and absence of hidden fees, Nolus is not just a leverage platform—it’s a viable, capital-efficient replacement for spot trading, particularly for long-term crypto investors seeking smarter exposure.

Nolus is designed to serve a wide range of users—from crypto-native traders to long-term investors—who are looking for smarter ways to manage capital and risk in DeFi. Whether you're actively trading or simply holding, Nolus offers unique advantages depending on your goals:

Looking to increase exposure to favorite assets without deploying extra capital? Nolus allows holders to scale positions efficiently, making it an ideal tool for those with high conviction in long-term growth.

With low fixed interest rates and real asset-backed leverage, Nolus provides the tools needed to execute directional trades—both Long and Short—while minimizing counterparty risk and slippage.

Nolus can be used to hedge existing holdings against downside risk without needing to liquidate assets, providing a protective layer during market uncertainty.

For those who want more flexibility with their capital, Nolus enables the use of leverage in a way that preserves liquidity, making it possible to remain active across multiple DeFi strategies simultaneously.
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