Oikos Exchange V2 + BNB Collateral

We are excited to announce a major upgrade to our platform, with exciting new features. As the development progresses, we are integrating key functionalities that will help us keep up with the competitors and increase our market reach. Today, we are presenting Oikos Exchange V2, with a revamped user interface and the ability to obtain a loan (denominated in Synth BNB) using BNB as collateral.

We recently migrated operations from Tron to the BSC blockchain and we are eager to explore a tighter integration with the underlying coin that powers the network (BNB). Adding BNB also contributes to the Synth supply and trading fees, while diversifying the collateral sources. This increases the system’s scalability, while at the same time, protecting it from potential price shocks, without diluting the value of OKS. To this end, in its current implementation, BNB stakers don’t receive fees or rewards as they take no risk for the debt pool.

How it works

The trial period will run for three months, with a planned initial total cap of 5000 BNB. The collateral requirement will be 150%, with a minting fee of 50 bps (0.5%) and an interest rate of 5% APR. The collateralization process will be managed through the Oikos.Exchange interface.

Upon locking collateral, BNB stakers create a debt they need to repay if they want to withdraw their BNB and leave the system. This is similar to the debt that OKS stakers create when they lock their OKS as collateral, but with a difference: BNB stakers will not share the risk of debt pool fluctuations. In other words, BNB stakers are not participating in the “pooled debt” aspect of the system, as their debt will be denominated in BNB as opposed to oUSD, and will not be subject to variations.

For example, if Alice locks 150 BNB as collateral, she can borrow 100 oBNB. Even if she uses that oBNB to make a series of trades that allow her to increase that 100 oBNB to 200 oBNB, she only needs to pay back 100 oBNB to unstake her 150 BNB. That profit is instead added to the OKS stakers’ pooled debt. Of course, because they do not take on the same risk as OKS stakers, BNB stakers do not receive oUSD trading fees or staking rewards.

A few final details: the minting fee and interest rate paid by BNB stakers are also paid to OKS stakers and the minimum position size is 1 BNB. At the end of the three-month trial period, all outstanding loans must be paid back. There will be a one-week grace period, after which anyone will be able to send oBNB to close their position and claim the outstanding BNB.

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Oikos

Oikos is an initiative to bring key DeFi applications to BNB Chain.