OPNX Launches oUSD Credit Stablecoin Inspired by UST and FTT

OPNX Launches oUSD Credit Stablecoin Inspired by UST and FTT

According to Su Zhu, founder of OPNX and Three Arrows Capital, the oUSD credit stablecoin introduced by OPNX drew inspiration from UST and FTT. In his remarks, Su Zhu pointed out that UST and FTT employ various techniques to mitigate the risk of bank runs, highlighting the critical structural vulnerability and personal risk associated with such events.

oUSD incorporates the characteristics of provable solvency and provable liquidation, ensuring transparency and accountability.

Su Zhu further stated on Twitter that the oUSD credit stablecoin was inspired by UST and FTT in a negative context. He mentioned that while UST serves as a passive sink for investors, its capital utilization rate is shallow. On the other hand, FTT experiences significant borrowing demand, but Genesis and FTX users primarily act as lenders. Su Zhu observed that UST failed to issue enough active bonds, leading to a potential death spiral without a natural buyer. He emphasized the need for techniques to avoid bank runaways in both UST and FTT cases, highlighting the associated structural vulnerability and personal risk.

To address these concerns, OPNX aims to establish the margin currency as the account’s unit, emulating the stable derivative structure of OKX. This involves continuously socializing risk into a profit pool. As a result, OPNX utilizes oUSD to inherit properties such as provable solvency and provable liquidity, including proof of non-liquidity. Additionally, all client assets are stored on-chain, ensuring a calm response to force majeure events.

Previously, OPNX announced the upcoming launch of its first Launchpad project, with oUSD becoming available soon. Users will be able to obtain oUSD through a USDT 1:1 purchase agreement. oUSD will serve as margin and PNL (profit and loss) for all OPNX currency futures contracts.

Following the collapse of investment fund Three Arrows Capital, founders Su Zhu and Kyle Davis teamed up with the founders of CoinFLEX to raise $25 million and establish the OPNX exchange.

OPNX aims to address the grievances of creditors who suffered losses in crashes involving platforms such as FTX, Celsius, BlockFi, and Mt.Gox. Rather than merely holding the debt until a compensation date (which is unknown), OPNX offers creditors two alternative options: exchanging the debt for USDG cryptocurrency, a form of credit asset, or using it for leveraged trading.

While both Su Zhu and CoinFLEX faced controversy and financial challenges, their collaboration in building OPNX signifies an attempt to rectify the issues in the industry and provide a viable solution for affected creditors.