OPNX Introduces oUSD Credit Currency for Crypto Margin Trading

Cryptocurrency futures exchange OPNX has introduced a credit currency, known as oUSD, for margin trading. In an announcement on July 5, Mark Lamb, the co-founder of OPNX, revealed that oUSD is currently in its initial phase, requiring users to deposit crypto assets into the exchange to receive it.

Lamb explained that in a future phase, referred to as phase 2, the platform aims to offer oUSD to users who deposit crypto into on-chain contracts, providing an additional layer of security called “bankruptcy remoteness.”

The oUSD credit currency addresses three key challenges outlined in its litepaper. Firstly, lenders are hesitant to trust platforms to hold cash loans backed by crypto collateral. Secondly, exchanges and lending platforms are cautious about lending cash to margin traders due to past bankruptcy incidents during the bear market in 2022. Lastly, crypto derivatives traders desire the ability to borrow and trade based on their crypto holdings rather than relying solely on stablecoins.

To tackle these issues, oUSD functions as a credit currency that can be purchased at a 1-to-1 ratio with USDT or used as a measure of profit and loss when users utilize Bitcoin, Ether, or other cryptocurrencies as collateral. Users with a negative oUSD balance are subject to an interest rate determined by holders of the platform’s native token, OX. On the other hand, users with a positive oUSD balance can convert it back to USDT.

Lamb mentioned that in the future, users will have the opportunity to acquire oUSD by staking cryptocurrency in smart contracts outside the OPNX platform. This move aims to provide users with bankruptcy remoteness, ensuring their assets are protected in the event of any potential insolvency at the exchange.

Addressing the controversy surrounding OPNX, which arose due to the involvement of co-founders Kyle Davies and Su Zhu, who were also co-founders of the failed hedge fund Three Arrows Capital, Lamb emphasized that the mistakes made by Davies and Zhu have helped shape OPNX into a stronger exchange.

While acknowledging their losses during the previous crypto bull market, Lamb highlighted the importance of rebuilding and learning from past experiences. He stated, “I think Kyle and Su kind of portrayed the zeitgeist of the last crypto bull market well, and they lost the majority of their net worth, but they are building back, and that’s what I am doing as well, and that’s what everyone should do, […] is just build back.”

OPNX aims to address the concerns of lenders, exchanges, and traders through the introduction of the oUSD credit currency, providing enhanced security and opportunities for margin trading within the cryptocurrency space.

For more news, find me on Twitter or subscribe to my YouTube channel.

What is your opinion on this issue? Leave me your comment below! I’m always interested in your opinion!

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended for you