Degen Protocol (DGN) refers to the decentralized, leverage trading protocol for advanced trading with liquidity providers, with up to 1,000x customizable leverage. According to the whitepaper, users select a trading pair before selecting a margin pool based on rating, liquidity, lending interest, and open positions. They can then trade and employ advanced tools like stop-loss and take-profit to their advantage. The users can also deposit funds into a margin bi-pool to receive a portion of all transactions and interest. A bi-pool is the combination of two liquidity pools. An ETH/USDC bi-pool, for example, is a combination of an ETH pool and a USDC pool.

Degen Protocol makes use of bi-pools to ensure that each pair has ample liquidity. Because of the potential vulnerability of uncovered tokens, it is not possible to mix existing pools for various pairs. Earnings are based simply on trading volume and are unrelated to a trader's profits or losses. If the lent funds are currently being used by traders, they cannot be withdrawn. Also, users are allowed to play various roles, which are as follows: