Levana
6 known investors
Levana is a decentralized perpetual swaps protocol built on a well-funded, collateral-settled design instead of a virtual AMM.
Also known as LEVANA FINANCE LTD · Levana Perps · Levana Well-funded Perps
Investors · 6
Company profile
researched Aug 2026Levana operates Levana Well-funded Perps, a leveraged, collateral-settled perpetual swaps protocol. The protocol is documented in a public whitepaper that specifies its trading mechanics, incentive structure, liquidity provision model, liquidation logic and risk framework. Positions are opened against collateral, settled on the basis of a spot price feed, and can be tokenized or created peer-to-peer. Liquidity providers supply a shared pool of capital that backs trader positions and receive LP and xLP tokens representing their claims, with yields determined by a market for liquidity supply and demand [0].
The protocol's stated design goals are strong settlement guarantees for traders at a low liquidation margin ratio, a risk premium paid to liquidity providers who absorb spot-market illiquidity and meltdown risk, and the elimination of any protocol risk fund, so that the DAO treasury carries no insolvency risk. Because settlement is based on spot prices rather than an internal market, the protocol lacks native price discovery; Levana addresses this with a Capped Delta Neutrality Fee mechanism and an associated Delta Neutrality Fund that can hold either the notional or the collateral asset. Additional mechanisms described include capped funding rates, borrow fees, delta neutrality taxes, liquifunding periods, and "cranking" to settle outstanding fees and liquidate positions when on-chain state becomes stale [0].
A related corporate entity, LEVANA FINANCE LTD, is registered in the United Kingdom under company number 14272021, incorporated on 2 August 2022 as a private limited company with a registered office in Mayfair, London, and a SIC classification of 64999 (financial intermediation not elsewhere classified) [1].
Business model
Levana runs an on-chain perpetual swaps protocol in which traders pay trading fees on opening positions, funding payments, borrow fees and delta neutrality fees; those payments accrue to liquidity providers who supply the collateral pool and to the protocol. Liquidity providers earn a market-determined risk premium for bearing spot-market illiquidity and meltdown risk, and the design explicitly avoids a protocol-maintained risk fund [0].
▸Full profile — market position, technology, go-to-market
Market position
Levana's whitepaper contrasts its design with the constant-product virtual AMM (vAMM) model used by many perpetual swap DEXs, arguing that vAMMs carry unfunded liabilities because payouts depend on liquidating other traders before bad debt accrues and on keeping certain positions open to hold the mark price near spot. Levana instead requires positions to be fully funded from collateral, so it claims settlement guarantees in any future market condition, a very low liquidation margin ratio, no reliance on a risk fund, and no insolvency risk to the DAO treasury [0].
Technology
The protocol is a collateral-settled perpetual swaps system whose liquidation prices derive solely from a spot price feed rather than an internal mark price. Core components described in the whitepaper include a liquidity provider pool with LP and xLP tokens and a utilization-ratio-driven borrow fee updating mechanism, capped funding rates tied to long/short notional open interest imbalance, a Capped Delta Neutrality Fee and Delta Neutrality Fund to substitute for native price discovery, liquifunding periods with liquidation margin checks, a cranking process to handle state staleness and settle fees or liquidate positions, and support for crypto-denominated markets using off-chain notional indices, including handling of staking-reward propagation through negative funding rates [0].
Go-to-market
Leveraged derivatives traders seeking perpetual swap exposure with collateral-backed settlement, and liquidity providers willing to take on spot-market illiquidity risk in exchange for a risk premium [0].
Compiled by commissioned research from 6 cited public sources — announcements, filings, and press listed under research sources below.
Timeline · 1
launches, deals, and filingsLEVANA FINANCE LTD (company number 14272021) was incorporated on 2 August 2022 as a private limited company with a registered office at 3rd Floor, 45 Albemarle Street, Mayfair, London, W1S 4JL, under SIC code 64999.
Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.
In the news
▸Research sources · 6
primary sources listed
- Whitepaper - Levana Perps Documentationdocs.levana.finance · web
6 public sources were cited for this profile; the first-party ones are listed here.
Frequently asked questions
- What does Levana do?
- Levana is a decentralized perpetual swaps protocol built on a well-funded, collateral-settled design instead of a virtual AMM.
- Who are Levana's investors?
- Levana's investors include Arrington Capital, Collider Ventures, Maven 11, ParaFi Capital, Woodstock Fund, Arrington XRP Capital.