Less than six months into 2021 and we’ve witnessed unprecedented growth in the market cap of the crypto market. With premier coin Bitcoin reaching new all-time highs and currently struggling to stay up, the crypto market has been blessed with a ton of trends and sub-trends that have managed to rake in billions of dollars, as reported by the leading crypto analytics website CoinGecko.
The decentralized finance [DeFi] 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 from this market, a ton of decentralized derivatives platforms have been launched to aid users to facilitate trades.
Projects like Synthetix, Mirror, and UMA have all been designed to offer users an array of approaches or methods to access synthetic assets. Synthetix, the dominant decentralized derivatives platform, according to reports, accounts for over 98% of the value locked in DeFi protocols. Enabling users to mint synthetic assets on its platform, this platform seeks to incentivize them by offering several 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 source. For every transaction carried out on the network, users are rewarded with its native token, the OPS token.
Albeit a bit alike, Octopus differentiates itself by integrating and leveraging the immense benefits of blockchain technology, the underlying technology on which over 98% of crypto projects are built. Additionally, the platform uses the advanced Binance Smart Chain [BSC], the foremost Ethereum competitor that has been described as a faster and cheaper alternative. Leveraging BSC, Octopus Protocol encompassing products for asset management, exchange, and settlement of derivatives will introduce scalability, faster and cheaper transactions to the DeFi derivatives market. With lower gas fees compared to Ethereum, Octopus via BSC will level the playing ground, opening up opportunities for prospective low-income investors to get in on the DeFi action.
Combining a Multitude of Products
Unlike a few of the top projects in the market, Octopus seeks to reduce the cost of collateral required before minting synthetic assets. Ordinarily, users will need to stake a certain amount of a platform’s native token [in this case OPS] to enable them to mint or create synthetic assets on their networks.
Whilst most will ask for huge sums as deposits, Octopus eliminates this major bottleneck by requiring a small collateral amount. The platform, according to developers, combines a multitude of products to complete and facilitate agreements with synthetic assets. Its broad ecosystem, a major facet of this nascent platform, allows users to capture a wider value from the creation of synthetic assets as well as exchanging assets to a user’s portfolio all on one network, offering the best decentralized derivatives experience.
Built to offer equal opportunities to all, a series of tools have been made available for anyone seeking to mint synthetic assets on the blockchain. The availability of these requisite tools means that any individual, regardless of the level of expertise, can seamlessly create assets on the Octopus ecosystem.
With all of these products simplifying the complex process, the OPS token will run as fuel on the ecosystem. Users will need to own this token if they are to engage 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 ecosystem’s governance, promoting a decentralized, advanced, and reliable community.
Octopus Protocol whilst piggybacking on some of the models of existing platforms seeks to pioneer a drastic shift in how this budding market works.
Image by Sebastian Ganso from Pixabay
This article is Originally posted on CoinCentral.com