In the context of the cryptocurrency space gradually integrating with traditional finance, Ostium emerges as a breath of fresh air - a decentralized trading protocol, designed sleekly on the Ethereum Layer 2 platform - Arbitrum, providing complete and fast access to Real World Assets (RWAs) without resorting to traditional tokenization.
What is Ostium?
Ostium is a uniquely decentralized trading protocol, deployed on Ethereum's Layer 2 Arbitrum.
Rather than following the conventional route of tokenizing real assets, Ostium adopts a bolder approach: opening up exposure to traditional assets through fully on-chain perpetual derivatives, thanks to a high-speed Oracle system.
Instead of confining off-chain assets (such as gold, bonds, or stock indices) within representative tokens, Ostium allows users to trade and speculate based on the price movements of those assets, without needing to actually own them.
All price data is provided by Oracle such as Stork Network and Chainlink, ensuring minimal latency and absolute accuracy.
This opens up the possibility of accessing traditional markets such as:
Foreign exchange (Forex).
Commodities.
Indices.
And of course, premium cryptocurrencies such as Ethereum, Bitcoin,…
All within a decentralized, non-custodial, transparent, and fully automated experience.
Ostium ecosystem
Ostium is not just a single smart contract but a multi-layered ecosystem:
Ostium Labs: The technology development unit, product research.
Ostium Protocol: The repository for all core smart contracts.
Ostium Interface: The user interface through the web browser.
Ostium Governance: A future decentralized governance mechanism, where the community has the authority to decide the direction of the protocol.
The uniqueness of Ostium
Virtual Exposure
As a result, users avoid the legal risks and low liquidity of tokenized assets. Trading becomes smoother and reacts much faster.
Perpetual Pool-Based Structure
This model shares liquidity between traders and LPs (Liquidity Providers), helping to reduce slippage and minimize temporary loss risk.
Dual Vault
Includes a Liquidity Buffer to handle instant withdrawal requests and a Market Making Vault to provide market liquidity, creating a flexible and efficient shared liquidity layer.
High-speed Oracle pricing
With integration from Stork Network and Chainlink, asset values are continuously updated, minimizing price latency when opening/closing positions.
Smart fee mechanism based on risk
Includes:
Funding Fee - The fee for maintaining open positions.
Volatility Fee - A fee based on market volatility.
Consequently, the protocol balances the amount of Open Interest and protects LPs' liquidity from imbalances.
Powerful automated trading features
Integrated with Chainlink Automation and Gelato Function, users can easily place orders:
Stop Loss.
Limit Order.
Auto-liquidation.
Maker/Taker fee model
This design encourages liquidity provision rather than merely consuming it, thereby enhancing trading efficiency and ensuring balance between the two sides of the market.
Investor
On October 6, 2023, Ostium successfully raised $3.5 million in a private funding round, backed by top-tier investors:
Balaji Srinivasan - One of the leading investors and thinkers in the Web3 field.
Susquehanna International Group (SIG) - A renowned financial investment fund.
General Catalyst - The organization behind a series of unicorn startups.
LocalGlobe - A venture capital fund with a rich history in Europe.
This is evidence of Ostium's long-term growth potential in the decentralized finance space.
Information is being updated
Some key components of the StandX project are still in the process of being completed and will be announced in the near future.
Development roadmap: Expected to update detailed implementation phases, technical milestones, and launch times for key features in the StandX ecosystem.
Tokenomics: The allocation structure, function, and distribution schedule of the ecosystem's tokens will be clearly presented in the updated version, helping users understand the value and applicability of the tokens.
Project information channel
Website: https://www.ostium.io/
Twitter: https://x.com/OstiumLabs
Conclusion
As DeFi seeks to reach beyond the boundaries of cryptocurrency to connect with the traditional financial world, Ostium offers a bold and direct solution: Trading real assets without the need for tokenization - a contrarian but strategic approach.
By leveraging a responsive Oracle structure, a flexible Pool-based architecture, and a clever fee mechanism, Ostium is gradually becoming a liquidity hub that connects the demand of risk-seeking traders with holders of real assets.
Source: https://tintucbitcoin.com/ostium-la-gi-tong-quan-ve-du-an-ostium/
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