Culminating to the end of the second quarter of the year, we’ve witnessed amazing developments in the crypto space, from institutional interference to the spike in interest of decentralized finance protocols, one of the nascent trends of the trillion-dollar crypto market.
With the crypto market currently staggering to stay up, having lost billions in market cap, one aspect that has somehow managed to stay afloat is the decentralized derivatives market. In less than 12 months, we’ve seen and heard of the massive amounts of money entering the DeFi market as liquidity. According to reports, the value of this trend has risen from $3 billion as of April 2020 to a whopping $88 billion at the time of writing. The decentralized derivatives market, one of the many niches of DeFi also experienced a massive surge in TVL, from $132 million in 2020 to over $2.6 billion in 2021. All of these data points to unprecedented growth of both the DeFi and decentralized derivatives markets, laying the groundwork for subsequent price surges this year.
With these markets currently booming, a ton of projects have been designed and launched to tap from the unlimited potentials, and one of these projects is the Octopus Protocol; an open project that was created to enable the seamless exchange, settlement, and management of synthetic assets. Leveraging some of the untapped potentials of the derivatives market, Octopus Protocol seeks to combine the best principles of a blockchain-based project while introducing unique features to the DeFi space.
One foremost facet of the Octopus Protocol is that it allows users to conveniently create tokenized derivatives and thereby enable access to real-world assets. Users on the ecosystem can seamlessly mint or create synthetic assets that impart access to certain real-life properties of assets like commodities, gold, bonds, stocks, and surprisingly, cryptocurrencies, all by tokenizing them on the blockchain.
Presently, the traditional derivatives market which relies solely on centralized infrastructures offers limited opportunities for users. High transaction costs, preferential accessibility, geographical limitations, and limited liquidity have created an unfair market. To address these problems and more, Octopus Protocol integrates advanced technical solutions into the derivatives market.
Aimed at facilitating engagement with decentralized derivatives with the use of synthetic assets, an array of products have been introduced into the Octopus Protocol ecosystem. The sole ability to issue and exchange assets on the platform, according to the development team, opens up infinite possibilities for users and investors alike. The ability to conveniently mint or create synthetic assets using a wide range of tools enables equal entry to all of the many benefits of this ecosystem.
With the derivatives market thriving and presently a boon to the DeFi and crypto markets at large, a ton of projects have been designed to offer users unrestricted entrance to all of the properties of the market in a multitude of categories. Amidst all of these existing projects, Octopus Protocol seeks to set it apart by offering a ton of unparalleled features, one of which is unrivaled entry to real-life assets via tokenized derivatives on the blockchain.
Another key difference between this project and others is that it leverages blockchain technology. Built on Binance Smart Chain [BSC], the platform is piggybacking on existing properties of the blockchain such as scalability, lower transaction cost, high throughput, amongst others. Making the markets accessible, Octopus Protocol enables affordable entry into the budding market.
With over 400 exchanges in existence at the moment, Octopus Protocol through a series of facets seeks to simplify access to the burgeoning markets, ensuring that anyone can seamlessly engage with derivatives.