Oxygen: CryptoRepo Borrow, Lend & Trade Smart Contacts?
Oxygen, found online at Oxygen.trade, aims to be the number one decentralized “CryptoRepo” platform. Find out how it works today in our review.
What is Oxygen?
Oxygen is an Ethereum-based platform created by the founders of Changelly. The platform aims to help cryptocurrency holders utilize their assets more efficiently.
Today, many cryptocurrency holders just hold onto their tokens. These users rarely make their tokens available for lending. This is in contrast to fiat currency: we make our fiat currency accounts available to lending by holding it in a bank.
With that in mind, Oxygen wants to “breathe new life” into crypto assets. The platform introduces the concept of the “CryptoRepo” agreement, which is a crypto-based take on the classic repo agreement.
How Does Oxygen Work?
Oxygen wants to help users take advantage of under-utilized crypto assets. The platform will provide three core functions, including:
- Generate income from lending your crypto assets
- Raise liquidity against crypto collateral
- Borrow crypto assets to go short
Today, there are about $500 billion of crypto assets. However, less than 1% of crypto assets are currently freely available to borrow. Oxygen wants to increase that number to 100%.
The company calculated that 1% figure, by the way, by tracking the 1400 crypto assets available today: of those crypto assets, just 23 are available to borrow from major exchanges.
Oxygen is designed to invest individuals and companies. Individual investors can use Oxygen to enhance their returns, for example, as can professional traders and cryptocurrency miners. Companies that can benefit from a platform like Oxygen include cryptocurrency funds, crypto exchanges, wallets, ICO projects, institutional investors, VCs, mining pools, and others.
Oxygen’s services are described as “CryptoRepo”. This is different from a classic repo. A repo is an agreement to sell assets and repurchase them on a specific date in the future (the date of maturity) at a pre-agreed price. Economically speaking, a repo is a loan secured against collateral. Oxygen’s whitepaper describes repo markets as “the oil that lubricates financial markets”. Today, there are more than $12 trillion in repos outstanding in the United States and Europe.
Oxygen envisions repo transactions a little differently. In Oxygen, a “CryptoRepo” transaction occurs when one party borrows digital tokens from another party, then commits to return those assets with interest at a future date. The borrower provides crypto assets to the lender as collateral, creating a secured digital transaction. Collateral is custodied by a smart contract. That smart contract also acts as a clearing house and a settlement agent.
A repo is a tested financial instrument. Oxygen just wants to bring that instrument to the crypto world.
Uses for Oxygen
Some of the uses for Oxygen include:
Earn Interest by Lending Crypto Assets:
Find someone to “rent” your crypto assets to according to your terms. Your collateral will be held in a smart contract that acts as an escrow agent.
Raise Liquidity Against Your Holdings:
Get liquid assets without selling your long-term holdings. Expand your portfolio without additional equity.
Borrow Crypto Assets to Go Short:
Crypto assets can be volatile. Oxygen users can make money from markets going down – in any asset, not just the most liquid ones.
Cover Inventory Gap:
Borrow any asset you need for market making. Use B2C and B2B liquidity to reduce short squeeze risk and asset-lending price re-rating.
Features of Oxygen
Some of the advertised features of Oxygen include:
Connect to all market players in a secure way through the Oxygen decentralized ecosystem. The decentralized nature of the ecosystem also means users can keep assets safe while reducing risks and costs.
Oxygen has integrated liquidity through its partnership with Changelly, allowing users to benefit from access to B2C and B2B liquidity from launch. The first Oxygen invites will go to Changelly’s existing userbase of 1.6 million people.
Best Practices of Financial Markets:
Repo agreements are real-world financial vehicles that have stood the test of time.
Oxygen will be regulated under the DLT regime in Gibraltar. The exchange also plans to register as an Alternative Trading System, or ATS, in the United States.
Oxygen will initially allow users to deal in Ethereum crypto assets. In the future, they plan to add bitcoin and other assets.
Who’s Behind Oxygen?
Oxygen is being developed by the founders of Changelly, a major cryptocurrency that has been operating since 2015. Oxygen’s development is led by Alex Grebnev, CFA (CEO). Alex has 16+ years of investment banking experience, including work as Managing Director at Merrill Lynch and Goldman Sachs.
Other key members of the team include Alex Melikhov (COO), Nikolay Volf (CTO), and Konstantin Gladych (CBDO).
Oxygen Token Sale
The Oxygen private pre-sale is scheduled to take place in early 2018. You can submit your email to learn more about the token sale by visiting Oxygen.trade.
Oxygen is a blockchain-based decentralized marketplace for borrowing and lending crypto assets in a safe and legally compliant way. It aims to breathe new life into crypto assets, allowing users to easily make better use of their assets.
The platform revolves around repo agreements. A repo is an agreement to sell securities and repurchase them at a specific future date of maturity. It’s a time-tested financial vehicle. Now, Oxygen wants to introduce the concept of the CryptoRepo, allowing users to use crypto as collateral to access financing.
To learn more about Oxygen and how it works, visit online today at Oxygen.trade.