Original Author: Wayne
OPNX is an encrypted exchange featuring creditors rights trading, jointly founded by the original Three Arrows Capital ZhuSu and Kyle Davies and the original CoinFLEX team. In April, it announced the completion of US$25 million in financing and the launch of spot and contract transactions. Last week, OPNX released the new platform currency OX and its token economics to replace the previous platform currency FLEX. At the same time, it also launched the Claim function of Celsius. Based on this, this article will expand some thoughts and opinions on OPNXs current operating conditions and market positioning.
OX Token Economics
OX is the new platform currency of OPNX. The previous platform currency was the original CoinFLEX platform currency FLEX. Officials claim that OX was inspired by CurveDAO (CRV/veCRV), and plans to build a token model that pledges Token for free transactions.
The specific plan is that when the percentage of pledged OX to the total pledged amount is greater than or equal to the percentage of its trading volume in OPNX, traders can get 100% of the transaction fee refund, and the part that exceeds the free transaction amount will get a 50% refund. In addition, there are votes to change the basic variables of the exchange (such as transaction fee rate, Token destruction, currency listing, etc.); to obtain benefits such as income from the RWA (Real World Assets) that will be launched later.
This kind of token economics is different from the traditional platform currency that is mainly used to deduct service fees. OPNX believes that this dynamically adjusted economic model is easier to promote the direct consistency between exchanges and traders. The author also draws two interesting ideas based on the rules published in its white paper:
1. By using SQL statements to query the number of pledged addresses of OX to estimate the approximate number of users of OPNX, which increases the transparency to a certain extent compared with the common CEX black box;
2. By staking a very small amount of OX to mainly obtain 50% of the return beyond the super free transaction quota, that is, to obtain the lowest possible actual transaction rate without bearing the risk of investment in OX fluctuations.
Circulation and Distribution Method
The total supply of OX is 9.86 billion (100 times the current supply of FLEX), issued on the Ethereum mainnet and Polygon, and the current total number of currency holding addresses is approx. The way to obtain it is through conversion of FLEX at a ratio of 1:100. If FLEX holders choose to convert and pledge their OX for three months, OPNX will reward an additional 25% of OX when the pledge ends, that is, the conversion ratio is 1:125 .
The current supply of OX is 2.33 billion, of which 1.33 billion are unstaked and 1 billion are pledged. 21.4 million FLEXs have been converted to OX, and the remaining 77.24 million FLEXs have not been converted. Based on the current OX and FLEX prices, the market value of the OPNX platform currency is about 192 million US dollars.
Staking- Transaction Model Analysis
There are 5 staking periods for OX, namely 2 weeks, 1 month, 3 months, 6 months and 1 year. The longer the OX pledge time is, the more voteOX you will get, that is, the greater the pledge rights you have. For example, the ratio of OX to voteOX is 1: 1 when staking for 1 year, OX to voteOX is 1: 0.5 when staking for 6 months, and so on.
Simply divide OPNX users into two types: traders and OX investors.
The traders demand is to reduce the transaction fee as much as possible while meeting the transaction demand. Therefore, when the overall transaction volume of the platform is large (that is, the proportion of its own transaction volume is small), and the number of pledges is small (that is, the proportion of its own pledge is relatively high) Its beneficial.
Investors can trade on OPNX with 0 fee for nothing in the process of holding and staking OX, so as to promote the increase of the overall transaction volume and transaction depth of the platform.
Generally speaking, the higher the transaction volume of the exchange, the higher the service fee contributed by the user, and the higher the value of the corresponding platform currency. Of course, this is not a linear relationship, because different exchanges adopt different ways to empower the platform currency. The same, such as profit repurchase and destruction, income repurchase and destruction, public chain issuance, etc. In addition, some exchanges still have cases such as brush volume, but there is still a positive correlation between the two. OPNX still needs to continue to increase its number of users and transaction volume in order to empower the platform currency.
debt transaction
Bond Market Introduction
Before discussing the Claim function of OPNX, lets first understand the overall situation of debt transactions.
Creditors rights transaction is a complicated process, first of all, the uncertainty of creditors recovery (such as claim verification, creditors priority, etc.), and secondly, the cumbersome process of creditors rights transaction, and there are also problems such as lack of transparency and information asymmetry, so although Through debt transactions, you can get benefits such as eliminating recovery risks, eliminating consideration risks, reducing time and money spent, and obtaining tax incentives. Debt transactions are still a niche market.
However, after the encryption market experienced a series of bankruptcy cases such as FTX, BlockFi, Genesis, and Voyage in the past two years, more than 20 million users lost 20 billion US dollars of funds, and the debt trading market has begun to take shape.
OPNX debt transaction function
Features: Substitutable and the first debt trading platform in the order book (Orderbook) trading mode. The former brings better pricing to Claim holders by tokenizing Claims, making them fungible and easily tradeable and transferable; the latter means better transparency and more Liquidity, enabling holders of all sizes to benefit from this scalability.
Process: OPNX cooperates with Heimdall, a tokenization solution provider, and all claims will be transferred and kept in the special trusts (SPVs) of each platform. Users need to provide details of claims to verify their eligibility, and sign an agreement to transfer the users claims Transfer to the trust, obtain creditors rights tokens issued to the users OPNX account at a value of 1: 1, and trade creditors rights tokens.
Fees: The cost of the user in this process is $26 + 5% of the tokenization fee (80% of the fee can be reduced by using OX payment, that is, the actual payment of 1% of the tokenization fee), the former is paid to the court in advance The latter is the way OX holders get income from RWA mentioned above. The above 5% tokenization fee can be reduced by 80% by using OX to pay, and use the OPNX promotion plan to obtain 10% of the actual paid amount of OX on this basis (there is a three-month pledge period), that is, the actual The fee is about 0.9%.
Example: Account 1 (invited account) has a claim of 1 million US dollars, saves 80% by paying tokenization fees with OX, and the payment amount is 10,000 US dollars, and account 2 (inviter account) will receive 1,000 US dollars in OX, that is, the comprehensive The cost is $9000.
Advantages: When a creditor chooses to sell a claim: Heimdalls automated onboarding process provides an efficient and simplified way for Claim holders to tokenize their claims, which can then be partially/fully exchanged for cryptocurrency Or stablecoins, providing Claim holders with a more flexible solution to obtain liquidity. This is a very practical function in the post-epidemic era when Silvergate/Signature Bank collapsed and cryptocurrency-fiat banking services were blocked.
When creditors (Claim holders) choose to hold claims: retaining the potential economic benefits of being a claim holder while providing immediate liquidity, as well as obtaining additional funding effects through portfolio margin and reducing the legal cost of managing claims .
Celsius Claim
Specific to the claims and transactions of Celsius opened by OPNX this time, the use process is to create an OPNX account and complete KYC, then provide details of the creditors rights and submit a creditors rights transfer application, and then sign the creditors rights transfer agreement to trade the creditors rights. Note: The amount of Celsius Claim must be greater than USD 2,000.
As of now, the trading volume of the Token CELSIUS corresponding to the Celsius creditors rights is still 0 since it went online on June 4. In addition to the reasons for the lack of users, it may be related to the fact that most of the Celsius creditors are US residents (US residents cannot pass OPNXs KYC). It is expected that the debt transaction of FTX launched in the next step may improve this dilemma. Previously, FTX lawyers disclosed that the source of FTXs customers is: 22% in Cayman, 11% in the British Virgin Islands, 8% in mainland China, 8% in the United Kingdom, and 6% in Singapore , South Korea 4%, Hong Kong 3%, Taiwan 3%, all of these regions can pass the KYC certification of OPNX.
Comparison of OPNX and other debt trading platforms
In terms of transaction fees: OPNX charges a minimum tokenization fee of about 0.9% from claim providers, and other credit trading platforms charge claim buyers about 1% each time (the actual situation is more complicated, based on the final transaction price and the number of credit transactions relevant) platform management fees. The comprehensive cost of OPNX is slightly lower;
In terms of transaction process: Most of the other debt trading platforms adopt the OTC mode. After the creditor provides the Claim, the buyer and the seller communicate and negotiate, and the buyer pays within a limited date, the transaction is completed. At this time, the creditor’s right will be transferred to the new creditor. If new creditors want to make a profit, they need to repeat the above steps or wait for the final settlement of the case; after OPNX tokenizes the debt, it can be traded freely similar to other cryptocurrencies, using the order book model. Therefore, OPNX is relatively simple in terms of transaction process;
In terms of liquidity provision: Generally speaking, the liquidity of trading pairs provided by CEX is greater than that provided by the OTC market, but currently OPNX has only been in operation for less than 3 months, and the debt trading part has been online for less than half a month, so it does not have For comparison, further observation is required.
References:
1.https://opnx.com/claims
2.https://ox.opnx.com/#
3.https://flexstatistics.com/
4.https://support.opnx.com/en/articles/7966466-faq
5.https://etherscan.io/token/0x 78 a 0 a 62 fba 6 fb 21 a 83 fe 8 a 343 3d 44 c 73 a 4017 a 6 f
6.https://polygonscan.com/token/0x 78 a 0 a 62 fba 6 fb 21 a 83 fe 8 a 343 3d 44 c 73 a 4017 a 6 f
7.https://opnx.com/ox/whitepaper
8.https://opnx.com/ox/whitepaper_cn
9.https://opnx-public-files.s 3.ap-northeast-1.amazonaws.com/pdf/OPNX_Claims_Factsheet.pdf
