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So far, 2021 has brought a lot to the stage. It allowed major cryptos to hit new ATHs, and Bitcoin itself skyrocketed past $64,000 per coin. However, more than just prices, it brought tons and tons of development, and even a new trend — tokenization. Of course, tokenization has been around for a long time, just like DeFi — the biggest trend of 2020. However, both waited for the right time to shine, which required the industry to mature enough to develop an interest in them, first.
Since it exploded, tokenization was focused in two major branches — NFTs and decentralized derivatives, also known as synthetic assets. These are essentially tokenized versions of commodities, stocks, bonds, and anything else of value. Basically, it ensured that another strong bond between the real world and blockchain was formed, and along the way, it allowed regular people to use highly available cryptocurrencies for investments into high-yielding assets from the real world.
Octopus Protocol — a young project that seeks to leverage the untapped potential of the decentralized derivatives market. The project aims to combine the best principles of the two worlds into one, and allow its users to create synthetic assets. In doing so, it will essentially allow people to create an easy way for traders to access the underlying assets, while the underlying assets themselves will receive greater exposure and more investors.
Octopus Protocol’s arrival solves a problem of conventional derivative markets, which rely entirely on a centralized infrastructure. As such, it is seen by many as overly limited. There are restrictions that prevent a lot of people from engaging with traditional derivatives, which creates unequal opportunities. Geographical barriers and high transition costs are among the biggest problems, but also limited liquidity, creating rather unfair market dynamics, where the rich have access while everyday people do not.
Interestingly, Octopus Protocol combines DeFi and tokenization by creating a new branch of decentralized finance through tokenization itself. It also has its own native token, OPS, which acts as the fuel for the ecosystem.
The token is based on Binance Smart Chain (BSC) network, on BEP-20 model. This will make it a utility token, and it will have a total supply of 150 million units. During the token sale, each OPS will cost $0.15, and the team’s goal is to sell 3 million OPS.
According to Octopus Protocol, OPS tokens accrue value from the platform fees, which users will pay when engaging and accessing the project ecosystem’s various services and products. This is mostly expected to be the creation of new synthetic assets and their exchange on trading platforms. This will allow Octopus to unlock value pools, while OPS will also be used for three separate purposes within the ecosystem.
The first one will, of course, be engagement. OPS will be used to incentivize actions in the ecosystem in a variety of ways. The second one will be Governance, which will function pretty much as expected — holding the tokens will allow users to participate in the project’s development through voting, making proposals, and alike.
Lastly, the project will also offer staking — one of the favorite activities in the DeFi sector, where users get to purchase tokens, lock them up within their wallets for a certain period, and receive rewards for doing so. As for its role in creating synthetic assets, users will have to provide OPS as collateral if they wish to create any synthetic asset.