OIKOS: A RISK MANAGEMENT PLATFORM FOR TRADERS AND USERS OF SYNTHS
INTRODUCTION
We must have known by now that there is an underlying risk for almost everything done with money or any other assets related to it. This is also the case with the use of the OKS token in Oikos system. The level of the risk has even elevated with the Synths minted in the platform. However, in thud article is, I will be making some quick analysis about the risk and will also let you know how Oikos is able to manage these risks for better operations and effectiveness as an exchange.
ABOUT THE RISKS
The current risks associated with the use of this platform are complex and worthy of great theoretical analysis inorder to understand and appreciate the solutions provided to mitigate them. Usually, all users of Oikos are made to get the OKS token which serve as collateral and then for the minting of the Synths but the use of the token for this purpose makes the holders incur debt. The debt involved as they stake is a risk because according to the market analysis of price, when there is any slight shift in the exchange rate, the debt would be affected. That makes it hard for users to back out except they burn more than the Synths they have minted. However, the change in price is something that is expected as many cryptocurrency user who are familiar with BTC must have had similar experiences and can testify to the fact that that is not a problem caused by the platform.
Another major risk is the centralization of a fractional part of the system which denies the decentralization of Oikos. This is part of the structure to make the system upgradable when there is need for such upgrade as to help achieve future enhancement with the proxy contracts. This feature obstruct gbe engineering team and can prevent trust among users in the platform.
THE SOLUTIONS TO THE RISKS
There are certain strategies implemented by Oikos to mitigate the risks invoked in using the exchange. The solutions follows decentralized protocols and would be implemented gradually as a form of resistance against these risks. The solution would be deployed to the essential areas like price, to affect the price feeds. Chainlink solution will also assist the decentralized protocol as a solution to the in-chain exchange operations.
The goals of Oikos are aligned to be in agreement with the community to ensure the consonance of its operation and the acceptance. This is a way to improve the platform and eliminate the indwelling risks for the users to be free from them.
CONCLUSION
There is another risk mitigation solution in this platform, known as the formal change management. This is to make users understand the management processes even as the Oikos improvement proposal is introduced for all the requests of users. Full understanding of the system will be ensured for with this and stakeholders will have a role to play in the community. If there is any change made to the system, the players in Oikos will be aware and will know the steps to take to avoid being affected negatively.
USEFUL LINKS
Github: https://github.com/orgs/oikos-cash/
Medium: https://medium.com/@oikoscash
Telegram: https://t.me/oikoscash
Twitter: https://twitter.com/oikos_cash
Facebook: https://www.facebook.com/Oikoscash-102203241479884/
AUTHOR'S DETAILS
Bitcointalk Username: Helpbrick
Bitcointalk Profile Link: https://bitcointalk.org/index.php?action=profile;u=2767516