OPNX has been proving that there is no rest for the wicked with their slew of new innovative products that have been released over the last few weeks.
The exchange recently launched OX, its new native ecosystem token. OX incorporates a dynamically adjusting staking fee model and has gained significant traction since launch, seeing over 70% of the circulating OX supply staked into its staking and governance platform aptly named “The Herd.”
With the growing adoption of The Herd, OX has rallied to new highs and is up 60% in the last two weeks. The OX rally found new legs after OPNX announced the latest addition to the derivatives exchange ecosystem: oUSD.
oUSD is OPNX’s new “on-platform credit currency”, a unique solution for adding transparency to the futures exchange’s margin and risk system. It’s no surprise that the mechanics of exchange margin systems were in need of urgent reassessment in light of the issues that emerged from the last crypto market cycle with exchanges like FTX.
To address this issue, oUSD was developed to provide users with the same utility offered by FTX’s portfolio margining system while mitigating risks for the exchange and all participants. Specifically, implementing oUSD in OPNX’s margin system removes the borrow and lend element that permitted exchanges like FTX to access users’ funds at will.
Importantly, OPNX is creating a credit system rather than a lending system.
oUSD affords OPNX traders complete transparency by providing a unified credit source for every trader. By reducing the risks associated with accepting various collateral forms and the need for real-time valuations on each asset, oUSD ensures a safer trading environment for all traders on the platform.
Outlined in their newly released Litepaper, oUSD will be used for all margin requirements on the exchange and is what traders’ profit and loss (PnL) will be based on. Profitable traders will be able to sell their oUSD in an oUSDT/USDT market or redeem their oUSD from a pool of USDT held by the oUSD protocol. Any traders at a loss and with a negative oUSD balance will incur an interest fee. However, they can repay their negative oUSD balances anytime by buying them from the market or the same pool operated by the oUSD protocol.
OPNX is designed to give traders what they want — to trade crypto flexibly using their entire portfolio of assets. The upcoming launch of the oUSD credit system will foster a secure and vibrant trading environment and aims to propel activity in the OPNX ecosystem to new heights.