Best Decentralized Derivatives Experience: The Octopus Protocol Vision

Less than six months after 2021 and we have witnessed unprecedented growth in the market capitalization of the crypto market. With major currency Bitcoin hitting new all-time highs and currently struggling to keep up, the crypto market has been blessed with a ton of trends and sub-trends that have managed to raise billions of dollars, as reported by the leading website. in cryptography analysis. CoinGecko.

Decentralized finance [DeFi] The trend happens to be the most valuable of the crypto trends right now. With billions locked in TVL [total value locked], there are endless opportunities for this emerging market. In an attempt to tap into this market, a ton of decentralized derivatives platforms have been launched to help users make trading easier.

Projects such as Synthetix, Mirror and UMA have been designed to offer users a variety of approaches or methods to access synthetic assets. Synthetix, the dominant decentralized derivatives platform, according to reports, represents more than 98% of the value locked in DeFi protocols. By allowing users to mint synthetic assets on its platform, this platform seeks to incentivize them by offering them various rewards.

Similar to these platforms is the Octopus Protocol, which according to the development team was built to simplify access to synthetic assets. Particularly similar to Synthetix, the Octopus Protocol provides users with a perfect passive income stream. For every transaction made on the network, users are rewarded with their native token, the OPS token.

Although a bit similar, Octopus differentiates itself by integrating and harnessing the immense benefits of blockchain technology, the underlying technology in which more than 98% of crypto projects are built. Furthermore, the platform uses the advanced Binance Smart Chain. [BSC], Ethereum’s main competitor that has been described as a faster and cheaper alternative. Leveraging BSC, Octopus Protocol, which includes products for asset management, trading and derivatives settlement, will introduce scalability, faster and cheaper transactions to the DeFi derivatives market. With lower gas rates compared to Ethereum, Octopus through BSC will level the playing field, opening up opportunities for potential low-income investors to get in on the DeFi action.

Combining a multitude of products

Unlike some of the major projects on the market, Octopus seeks to reduce the cost of the collateral required before minting synthetic assets. Typically, users will need to stake a certain amount of a platform’s native token. [in this case OPS] to allow them to coin or create synthetic assets in their networks.

While most will request large sums as deposits, Octopus eliminates this major bottleneck by requiring a small amount of collateral. The platform, according to the developers, combines a multitude of products to complete and facilitate deals with synthetic assets. Its broad ecosystem, an important facet of this fledgling platform, enables users to capture broader value from the creation of synthetic assets, as well as trade assets to a user’s portfolio, all on one network, offering the best derivatives experience. decentralized.

Built to provide equal opportunity for all, a number of tools have been made available to anyone looking to mint synthetic assets on the blockchain. The availability of these necessary tools means that any individual, regardless of experience level, can seamlessly create assets in the Octopus ecosystem.

With all of these products simplifying the complex process, the OPS token will function as fuel in the ecosystem. Users must possess this token if they are going to participate in any of the activities on the network. Being a governance token, OPS will offer anyone on the network unreserved rights to vote for the governance of the ecosystem, promoting a decentralized, advanced and trusted community.

Octopus Protocol, while leveraging some of the existing platform models, seeks to pioneer a drastic change in how this fledgling market works.

Image by Sebastian Ganso from Pixabay

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