Octane Finance, a new decentralized limit order protocol announced its IDO date that would begin on 31st September. The IDO announcement comes after a successful Beta testnet launch that attracted more than 5K users within hours of the launch. Octane leverages existing DeFi lending/yield protocols to generate the best APY on pending limit order assets. The long-term vision is to become a highly capital efficient & rewarding trading platform built upon open-source protocols.
A limit order is an order to buy or sell an asset at a specific price (limit price) or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. Octane supercharges limit orders using open decentralized finance applications.
How Octane is Different From Existing Limit Order Providers?
Octane’s limit orders are quite different from what existing protocols such as 0X and 1Inch have to offer. Both platforms work on a maker-taker model to place and fill the limit orders. Each maker has to wait for the taker to fill the order. This means even if the limit price is reached and there is no taker, then the order will not be executed.
Octane does not use a maker-taker model for limit orders, instead, it gets execution liquidity from DeFi AMM’s. The platform wanted the limit order execution to be at most priority and hence have built a model in which the order does not have to wait for a taker if market conditions meet limit order conditions.
The key differences and advantages Octane has over 1inch or 0x or both are as follows:
- Decentralized: Octane limit orders are not placed on any centralized database. Order is placed via interaction with Octane’s smart contract and executed via a network of executors. The existing decentralized network of executors ensures order execution happens. Even if a single executor has blacklisted a particular order and denies execution of the same, there is always some other executor waiting to execute the order and collect rewards for it. As long as the order fee rewards are greater than the executor’s gas fee, there will always be a financial incentive to execute the order.
- Best Liquidity: As AMM’s liquidity pools have the most locked-in assets in DeFi, this helps fuel greater liquidity increasing the chances of successful order execution from Day 1 for the protocol to be usable. Order aggregation can be done across multiple AMM’s to further increase the liquidity and efficiency of the order execution.
- Rewarding: Limit order funds are sent to the lending protocol to generate APY till the limit order conditions are met.
- Best Order Execution: No issue of lack of funds in the user wallet as the limit order assets are already locked inside Octane (generating an APY on the limit order assets). No need to wait for a taker to execute the order. Order is filled with a liquidity provider pool of any AMM.
Octane is a community-first platform. The team initially leads Octane Finance. As time progresses and the platform matures, the Octane community will take charge of the project. Octane Community will handle everything like deciding on new features, executor policies, partnerships, and more. Octane community will be a group of users from all across the board, including developers, traders, investors, marketers, and funds.
Tokenomics and Utility
OCTANE is a deflationary utility and governance token. The token utility is to provide protocol fees and APY generated on limit orders. OCTANE token will have a max supply of 100M.
Octane token allocation & vesting schedules are as follows:
- Community: 45% These will be distributed as rewards for LP Staking, Contributions, etc over a period of 3-4 years.
- Team: 18% Vested for 3 years. 1-year vesting cliff, 40% released post 1 year and rest is distributed @ ~2.5% per month for the next 24 months.
- Seed Round: 5% Vested for 1 year. 20% distributed at listing, rest 80% after 4 month cliff @ ~10% per month for next 8 months.
- Private Sale: 6.5% Vested for 1 year. 20% distributed at listing, rest 80% after 3 month cliff @ ~8.89% per month for next 9 months.
- IDO: 1.5% Available on listing.
- Advisory: 2% Vested for 3 years. 1-year vesting cliff, 40% released post 1 year and rest is distributed @ ~2.5% per month for the next 24 months.
- Foundation Reserve: 22% IT will be used for platform development, insurance, liquidity, listing fees, etc, and after DAO setup will be used according to governance calls.
The native token has a host of utilities and passive rewards that can help its holders not only make profits but also become a part of the governing process. Users can get up to 50% discount while paying trading fees using the OCTANE token. OCTANE holders will be responsible for governing the Octane Protocol, which includes adjusting executor policies, choosing new token pairs to support, improving governance itself, and more. Users can purchase or obtain the native token by placing limit orders to get trading discounts.
To learn more about Octane Finance visit Octane.Finance