OPNX, a cryptocurrency futures exchange, has introduced a credit currency called oUSD for margin trading, according to co-founder Mark Lamb. The currency is currently in its Phase One release, where users cannot withdraw their crypto assets without depositing them on exchanges. Phase Two, the platform plans to offer oUSD to users who deposit cryptocurrencies into on-chain contracts for potential bankruptcy isolation.
oUSD aims to address three problems outlined in its Litepaper. First, lenders are hesitant to trust platforms with cash loans backed by cryptocurrency collateral. Second, exchanges and lending platforms are reluctant to lend cash to margin traders due to past bankrupt cies during the 2022 bear market . Third, crypto derivatives traders desire "portfolio margin" to borrow and trade based on their cryptocurrency holdings. oUSD serves as a credit currency that can be purchased 1:1 with Tether or used to measure users' profit and loss when relying on cryptocurrencies as collateral. Users with negative oUSD balances must pay an interest rate set by holders of the platform's native token OX, while those with a positive balance can exchange it for USDT.
Lamb mentioned that in the future, users may earn oUSD by staking cryptocurrencies in smart contracts outside the platform, providing them with bankruptcy isolation and safeguarding them from potential exchange bankruptcies. Lamb emphasized the importance of removing the escrow aspect and enabling on-chain escrow, ensuring users' solvency and the integrity of their collateral. This allows for a safer trading environment.
OPNX has faced controversy since its inception due to its co-founders, Kyle Davies and Su Zhu, also being involved in the failed hedge fund Three Arrows Capital. Despite criticism, Leslie Lamb, OPNX's CEO, defended the founders, stating that their mistake s have contributed to making OPNX a better exchange. She highlighted the need for rebuilding and urged everyone to focus on moving forward.
