With Opium, people from any part of the world can build, buy and sell Ethereum-based derivatives. It is a place to conveniently use financial instruments and oracles jointly. For any transaction performed there, a token is given, and it can be sold for extra income or saved for a later opportunity.
The financial primitives in this firm are vast and powerful. They are available on-chain but present off-chain opportunities such as picking more than one order and choosing a good trading strategy.
Two important products to gain from Opium include swap.rate and opium.exchange. Swap.rate was created for people that want to make derivatives while the second product is for those that want to trade decentralized derivatives.
The men behind the creation of Opium Protocol are Arjan Van Der Kooji and Andrey Belyakov. Andrey buys and sells derivatives for a living and has been doing so before the year 2010; this has gained him recognition at the CFA Institute where he belongs. Arjan’s investment skills are amazing but what is more fascinating is how he has been able to manage businesses efficiently for the past two decades.
The majority of traders in the world choose financial derivatives but for many years, the big banks and some other financial institutions took control of the activities involved. Opium Protocol thought about shifting the power hijacked by banks to the people so that they can enjoy what they do at a cheaper rate and more guarantee for their investments. Opium also considered the vast majority of people globally that do not go to bank.
Just like other derivative markets, one can choose to invest, predict, arbitrate, trade by margins or hedge their funds. Apart from these normal occurrences, there are peculiar features that pertain to Opium Protocol and they include the ability to design products and refer people to get paid.
What to expect after joining
The tokens given to anyone that trades on this protocol are of the ERC-721o grade. This type of token was chosen because it is appropriate for buying and selling financial instruments. Actually, it was some professionals from Opium that developed this standard when they thought of creating something better than the well-known ERC-721 and ERC-20 without losing any of their main features. Apart from its use on Opium, the ERC-721o token standard is also usable on other protocols.
There were three major reasons behind the creation of ERC-721o token: They are to compose, to decompose, and to recompose.
The ERC-721o token was created to compose so that the cost of doing so on the two other tokens will be reduced. Trading on tokens involves paying gas fees but less is required when one, instead of the two, is involved. When the ERC-721o token is decomposed, the constituent tokens are rebuilt and saved for the user.
Recomposing makes it cheaper to add or subtract a token from a known portfolio.
Opium.exchange is a plan to help people to invest, trade or hedge decentralized derivatives without any third party coming into play. It is among the must-picks because orders are executed on it rapidly. Its on-chain transactions guarantee the safety of funds.
With swap.rate, users can make profit simply because of the changes in price that exist when people borrow and lend assets in the DeFi industry. An agreement can be arranged between two investors scheduled to pay or gain interests from Opium where one of them agrees to carry the burden of the other and vice versa after calculating what the current plan should be with an assumed principal.
The importance of Opium Protocol
The need to choose this protocol over the others stems from the fact that there is an opportunity to benefit from the DeFi market and the traditional type in one space. Unlike other similar protocols that work strictly with on-chain, Opium has both on-chain and off-chain features.
Opium reserves the more difficult transactions for its off-chain facilities, which it calls the layer 2, while the easier ones are based on on-chain methods. The off-chain facilities also serve as an avenue to attract those who have been used to the traditional way of trading financial products.
Opium Protocol was verified by SmartDec and is now fully developed based on Ethereum standards. Presently, Opium can boast of three products and several markets. It is also in the business of partnering with businesses to develop their own derivatives especially if they will be traded on its platform.
Becoming a member
There is no other way to become a member than to click on the link, www.opium.exchange. Even if you just want to know the derivatives they showcase, it is necessary to go there. You can also know every important detail about Opium Protocol through its Twitter account, Telegram, and blog.