As per the statement shared by the co-founder of OPNX, the platform has launched a credit currency, oUSD, for margin trading. Currently, the credit currency is in the first phase of iteration, which suggests that users would not be able to receive it without depositing crypto assets within the exchange. In a phase 2 version, which would roll out in the near future, the platform has planned to make oUSD available to users who deposit crypto into on-chain contracts to allow for possible bankruptcy remoteness.
Within the lite paper of the currency, oUSD is projected as a solution to three major problems. The first problem revolves around lenders not trusting platforms to hold cash backed by crypto collateral. The second problem relates to exchanges and lending platforms not being willing to lend cash to margin traders. Similarly, this practice led to a number of bankruptcies during the bear market throughout 2022. The last problem relates to crypto derivatives traders wanting to get hold of portfolio margins, or the ability to borrow and trade depending on their crypto holdings instead of stablecoin holdings.
OPNX is Set to Open New Doors with oUSD
The oUSD token can be purchased at a 1:1 ratio with Tether or can be used to measure profit and loss whenever users rely on Bitcoin, ETH, or other cryptocurrencies as collateral. As long as users with a negative oUSD balance are concerned, they must pay an interest rate determined by the holders of the platform’s native token. Users who have a positive cash balance can simply cash out by redeeming the token for USDT.
The co-founder of the OPNX, Mark Lamb, stated that users would be able to get their hands on oUSD by staking cryptocurrency within smart contracts outside of the platform. This would enable users to have bankruptcy remoteness, protecting them from any possible insolvency at the exchange.
OPNX has been the center of great controversy ever since its inception, as two of its co-founders, Kyle Davies and Su Zhu were also the co-founders of the failed hedge fund, Three Arrows Capital. The exchange has been so heavily criticized that the CEO, Leslie Lamb, grilled investors for misleading the public. Similarly, Lamb argues that the previous mistakes of Davies and Zhu helped them make OPNX a better exchange.
