DeFi Liquidity Pools generally have isolated utility, e.g., pool for lending, pool for swaps, etc. Lekker, a winning project from ETH Lisbon 2022, addresses this problem by integrating lending and swaps (through Aave and Uniswap V3) to enable leveraged derivative trading. 

There are two key parts of the project, the Lekker Protocol and the dApp, delivering the following benefits: 

A. **Through Lekker, users can open single-click leveraged positions, hedge and execute ‘delta neutral’ strategies**. Positions in the Protocol are represented by ERC20 tokens in a pool that holds the assets, making it a novel, fully backed leveraged derivative.

B. **Lekker enables more intuitive and accessible derivative trading that appeals to a wider user base, adding significant utility to the Uniswap liquidity pools.** Derivative trading is expected to drive an increase in user engagement and liquidity.

The Lekker Protocol is currently in closed alpha testing on Arbitrum Mainnet, and the first dApp is almost complete. This grant will not only accelerate the launch but also enhance the security of the protocol.