Why Levery exists
Most institutions hit the same wall when evaluating DeFi-style markets:- Centralized exchanges are custody-heavy by design, which increases operational, security, and balance-sheet burden.
- Permissionless venues are open by default and difficult to align with identity, permissions, and jurisdictional controls.
Understand each exchange model
CEX
Centralized venues with custodial balances, off-chain matching, and internal ledgers. Settlement and reporting are
controlled by the operator.
DEX
Smart-contract venues where pricing and settlement are executed on-chain. Transparency and composability are native
properties of the execution layer.
CEX model
A centralized exchange (CEX) typically operates as a custodial platform:- Custody: user balances are held by the operator (or a designated custodian) and tracked in an internal ledger.
- Market mechanism: matching is usually an off-chain order book; fills may occur without an on-chain transaction at the moment of execution.
- Settlement: economic finality is often internal first (ledger update), with on-chain settlement occurring later (batching, netting, withdrawals).
- Visibility: trade data, risk events, and balance changes are observable through the platform’s APIs and reports, not as universally verifiable state transitions.
- Primary risks: operator/custodian risk, ledger integrity, withdrawal availability, and operational continuity.
DEX model
A decentralized exchange (DEX) is defined by where execution and settlement occur:- Custody: assets remain on-chain, controlled by wallets or custody systems that authorize transactions.
- Market mechanism: pricing is implemented in smart contracts. Pool state and pricing rules are public and deterministic.
- Settlement: execution is the settlement event. State updates happen on-chain, with chain finality defining trade finality.
- Visibility: trades, liquidity changes, and resulting balances are verifiable from on-chain receipts and state.
- Primary risks: technological vulnerabilities, incompatibility with regulatory compliance (AML/KYC), impermanent loss and liquidity manipulation (MEV).
How Levery combines the best of both worlds
Levery combines DEX-grade execution and settlement with institution-grade controls. The venue runs as a permissioned AMM where swaps and liquidity events settle on-chain, while the institution retains full authority over KYC/KYB/AML enforcement, user permissions, and risk thresholds. Instead of placing the “venue boundary” at a proprietary internal ledger (as in centralized platforms), Levery places it at policy and identity enforcement, so compliance gates are evaluated as part of the venue’s execution path, and outcomes remain externally verifiable through on-chain receipts.Levery
A venue stack that uses DEX execution rails while enforcing institutional policy (permissions, controls, and
integration surfaces) at the venue boundary.
What stays DEX-native
- On-chain execution and finality: swaps and pool state transitions settle on-chain, producing canonical receipts and deterministic ordering for audit and reconciliation.
- Atomic, verifiable state changes: price movement, fee assessment, and balance updates commit together (or revert), enabling independent verification from on-chain state.
- Composability: the venue inherits standard DeFi primitives for liquidity and settlement, without requiring bespoke settlement systems.
What becomes institution-controlled
- Identity and permissioning: KYC/KYB status and account eligibility are enforced through venue permissions (who can trade, provide liquidity, or access specific pools).
- AML and policy enforcement: venue rules can incorporate AML decisions (wallet screening outcomes, risk tiers, sanctions gating) and apply them at the time of execution.
- Pricing integrity and execution constraints: venues can enforce constraints such as eligible routes, allowed pool configurations, oracle usage (where configured), and execution limits.
- Economics and treasury transparency: LP fees and platform service fees are explicit and observable on-chain, supporting transparent fee accounting and treasury controls.
- Governance and lifecycle control: the institution defines deployment parameters, operational policies, and permitted upgrades according to its governance process.
Comparison matrix
| Dimension | CEX | DEX | Levery |
|---|---|---|---|
| Venue boundary (source of truth) | Operator-controlled systems and internal ledgers define balances and fills | On-chain state and receipts define balances and fills | On-chain receipts remain authoritative, while the institution defines venue policy (permissions, limits, controls) |
| Custody posture | Typically custodial (operator or appointed custodian holds user balances) | Non-custodial by design (wallet/custody system signs on-chain actions) | Non-custodial by default: institution custody integrates without becoming the venue ledger |
| Execution & settlement | Often ledger-first; on-chain settlement is optional or delayed | Execution settles on-chain at transaction finality | Execution settles on-chain, with institution-defined constraints applied at execution time |
| Market mechanism | Off-chain order book / matching engine; flexible order types | On-chain AMM or on-chain order book; deterministic rules | Permissioned AMM execution, designed for institutional venue operation |
| Access control | Platform accounts; permissions enforced in operator systems | Often permissionless by default | First-class permissioning: who can trade/provide liquidity, per pool and per role |
| KYC/KYB/AML enforcement | Enforced in onboarding and operator workflows; depends on platform integrity | Not enforced at the protocol level | Embedded into venue policy: eligibility gates can be enforced as part of execution authorization |
| Auditability & reconciliation | Depends on operator reports, logs, and attestations | On-chain receipts and state are independently verifiable | On-chain receipts + deterministic ordering, with operational views derived for reporting |
| Pricing integrity | Determined by matching rules; opaque without full order book/venue data | Verifiable from pool/order-book state, but may be exposed to permissionless dynamics | Verifiable execution with controlled access; policy constraints can restrict participation and venue behavior |
| Operational efficiency | High throughput and low-latency matching; internal netting | Chain throughput and on-chain execution costs apply | Institutional-grade controls on DEX rails: preserves verifiability and atomic settlement while constraining access |
| Risk profile (typical) | Operator/custodian risk, ledger integrity, withdrawal risk | Smart contract + chain/RPC + ordering effects | Contract + chain risks remain, while permissioning and policy reduce exposure to open-access market assumptions |
| Treasury transparency (fees) | Fees accounted in internal systems; partial external visibility | Fees are on-chain and attributable to execution | Explicit fee attribution and transparency: LP fees and platform service fees are observable and reconcilable on-chain |
| Governance & lifecycle control | Operator controls upgrades/configuration centrally | Protocol governance varies; may be external to the venue operator | Institution-controlled lifecycle: venue parameters, permissions, and risk thresholds follow institutional governance |
Why are Levery’s DEX platforms useful for institutions that trade tokenized assets and stablecoins?
Tokenized assets and stablecoins benefit from a venue that can:- Settle atomically on-chain (execution and settlement coupled in a single state transition).
- Embed compliance gating in the venue (KYC/KYB/AML status and risk rules are enforced before execution, not after).
- Support independent auditability (transaction hashes and state transitions remain the authoritative source for verification).
Deterministic reconciliation
On-chain execution produces:- Canonical transaction hashes as the primary reconciliation reference
- Deterministic ordering (block order) for audit trails
- Receipt-level verification of amounts and fees
Atomic settlement semantics
- Trade execution and settlement are coupled
- Partial failure modes are reduced (either the transaction commits or it reverts)
- Multi-step flows can be encoded as a single execution path, bounded by explicit rules (deadlines, slippage)
Shared asset representation
- Stablecoins and tokenized assets share settlement semantics
- Balances and transfers are verifiable state
- Venue operations remain consistent across asset types (subject to policy)
Programmable constraints at execution time
Structured execution data and rule enforcement at the time of execution:- pool and route-level constraints
- permission checks
- dynamic fee logic and venue-specific pricing adjustments (where configured)
- explicit boundaries (deadlines, slippage constraints)
Operationally compatible state
DEX-style settlement is externally verifiable, but institutions still require reporting and operational views. Levery supports operational surfaces that map on-chain events into institution-readable records (for example: pools, swaps, positions, balances, and portfolio snapshots) for monitoring and reconciliation.Operational views are indicators. Final reconciliation remains anchored to on-chain receipts and external explorers
referenced by transaction hashes.
What you can build with Levery
Permissioned spot markets
Launch approved trading pairs with configurable pool access, asset restrictions, and policy safeguards.
Institutional liquidity programs
Support controlled liquidity provisioning and position lifecycle management with operator-grade oversight.
Embedded exchange experiences
Provide swaps and liquidity inside an existing banking/fintech portal with a branded UI and clear user journeys.
On-chain execution with audit readiness
Generate consistent, queryable operational datasets for risk, compliance, and internal reporting workflows.
Where Levery fits in your stack
Levery is designed to integrate cleanly with existing institutional systems.Identity & compliance
Plug in your KYC/KYB provider, screening rules, and approvals workflow. Levery’s execution layer enforces the
resulting entitlements.
Key management & custody
Support client-side signing (self-custody) and institutional key management patterns. Custody can be optional or
layered as needed.
Market operations
Admin controls for assets, pools, policies, and incident response actions (e.g., pauses and restrictions).
Data & reporting
API-ready datasets for monitoring, analytics, reconciliation, and internal reporting pipelines.
What Levery is not
Setting expectations early helps integrations go smoothly:- Levery is not a regulated entity and does not replace legal/compliance obligations.
- Levery is not a fiat on/off-ramp (these are typically integrated via third parties).
- Levery is not a custody provider.
- Levery is not a trading platform; it is technology that enables the creation of institutional exchanges.
Security and assurance
Levery is engineered for environments where security and oversight are non‑negotiable. The stack is designed around:- clear trust boundaries (on-chain enforcement vs. off-chain operations)
- least-privilege operations and role-based administration
- audit-friendly observability and reproducible outcomes