Oxygen, a new venture of DeFi, announced the completion of the first round of financing of USD 40 million
Oxygen, a new venture of DeFi, announced the completion of the first round of financing of USD 40 million, which was led by Alameda Research, the world's top encryption market maker, and other well-known capital and holding companies such as Multicoin Capital, Genesis Capital and CMS Holdings participated in the financing.
Oxygen protocol is a decentralized "Prime Brokerage Protocol". In the past, the main broker business was a special service for institutional investors, aiming at improving the efficiency of users' capital use. Through the Oxygen agreement, this kind of service can be decentralized and enjoyed by ordinary investors.
According to the press release of Oxygen agreement, the agreement will be integrated with Maps.me, an offline map application launched last (1) month, and join the Serum ecosystem to import a large number of potential users for Serum.
I have high hopes for Oxygen Agreement, Sam Bank Man-Friend, founder of Alameda Research and FTX.
He told the zone that Oxygen is the most complicated DeFi protocol so far. Oxygen takes the "fund pool" as the main structure, and through the advantages of no license, fast transaction speed and low cost, users can trade, mortgage assets to obtain income, borrow money and create synthetic financial products on the decentralized platform.
Sam bank man-friendly (sbf) indicates that:
"Oxygen protocol will become the most complex but elegant asset risk management tool in DeFi ecology. It not only has a strong team, but also has a growing Serum ecosystem and huge potential users as the backing. We believe this is the next step in the large-scale application of DeFi. "
What is the main broker business?
Prime Brokerage (PB) is the core business of investment banking market transactions in traditional finance, and its operation logic is to link various market participants, including hedge funds, pension funds, insurance companies, institutional investors and liquidity providers.
Users can directly trade with each other in PB, and investment banks will even match the asset mortgage and loan (such as securities) needs of PB users, so as to maximize the capital efficiency of users. According to the data, the securities borrowed and lent by American banks from Q1 to Q3 in 2020 exceeded $4.2 trillion.
However, this service can only be used by large financial institutions with assets exceeding several hundred million dollars. It does not mean that the main broker business itself is designed for large institutions, but reflects the economic reality. All kinds of costs of this service, including fund coordination, risk management and human resources costs, are not affordable for ordinary investors.
Alex Grebnev, co-founder of Oxygen, said:
"We are very happy to take the next step of decentralizing finance. The main broker service provided by Oxygen Agreement can meet the needs of individual users and even financial institutions. "
The application scenario of Oxygen protocol
Oxygen takes the fund pool as its main structure, which is everyone's assets. Through the main broker service agreement without licensing system, high throughput, low transaction cost and expandability, Oxygen makes lending popular and makes users use funds more efficiently.
Its application scenarios include:
Generate revenue: users deposit funds and earn revenue from them.
Lending: Users can borrow assets from the fund pool and pay interest to the fund pool.
Trading: Users can trade with the decentralized exchange Serem in the fund pool.
Synthetic products: Assets mortgaged in the pool of funds to trade more complex commodities.
To put it simply, it is the lending platform Compound+synthetic asset platform Synthetix+decentralized exchange Uniswap.
The biggest advantage of Oxygen is "the efficiency of capital utilization".
According to its white paper, in the Oxygen agreement, users can repeatedly mortgage assets, and the loaned assets can receive income, and they can also use borrowed assets to increase income. Continuing the consistent style of FTX Exchange, when users want to borrow other assets, they can use the total value of "all assets" in their accounts as collateral, which means that the risk of liquidation or margin increase of users will be reduced, and "cross-asset mortgage in the same account" will be achieved.
Embed in Maps.me wallet and import 140 million users
According to the press release, the Oxygen Agreement will first introduce a fund pool lending service, in which users can deposit assets, use the infrastructure in the Serum chain, set loan conditions to lend assets, and at the same time, lend assets to generate income. Borrowers can use the "diversified assets" of their investment portfolio as collateral to reduce the liquidation risk.
It is worth noting that Oxygen protocol will be embedded in Maps.me wallet, which will enable Maps.me users to obtain "passive income" and bring "asset liquidity" to the Serum ecosystem.
Sam Bankman-Fried concluded:
"DeFi application can reach 1 billion users, and its chain value can reach 10 trillion. The only limitations are high handling fees, slow transaction speed and scalability.
The efficiency and composability of Solana means that all DeFi applications built on it can be integrated with each other as if they were on the local side. Oxygen will play an important role in the financial ecosystem of Serum. "