DeFi Options Protocol 321-Protocol is about to Launch, Opening a New Wave of DeFi Inclusive Finance
Preface: A year ago, the concept of DeFi was far less accessible than we know it today, but the proliferation of liquidity mining/yield farming has driven DeFi to become the popular track in the industry. In the span of a year, we have seen the amount of value in DeFi (TVL) rise from $700 million to $91 billion. There is no doubt that DeFi will be the most important long-term driver of cryptocurrency valuations and will certainly be the most valuable future prospect for cryptocurrencies.
The competitive landscape for DeFi is in a state of flux. The license-free and combinable nature of cryptocurrency “Lego” creates the continuous innovation, which makes it exciting for the participants to become more than just a cryptocurrency, but also brings another side, such as the inability to fully keep up, while the situation becomes increasingly complex. One of the extremely bright players on the DeFi track, 321-Protocol, is attracting the attention of the public with unique advantage bright spot.
First of all, 321-Protocol is the world’s first DeFi options derivatives contract platform that supports cross-chain + Layer 2 expansion technology aggregation trading, and will gradually support mainstream public chains such as BSC, Ethereum (ETH)eum (ETH), Heco and Layer 2 platforms such as Polygon and Arbitrum Rollup. Unlike the common automatic market maker model (AMM), 321-Protocol adopts CC-LPP + leading CF-PMM active market maker model to gather maximum liquidity and achieve extremely low trading slippage for users.
From a long-term vision, 321-Protocol is committed to be a DeFi derivatives top-level protocol. 321-Protocol is committed to creating richer DeFi derivatives assets from the crypto asset level, and from the user level, the protocol is committed to making DeFi derivatives finance more inclusive and decentralized, crypto options derivatives is a very large market, and the market is bound to be decentralized in the future. 321-Protocol is committed to building phenomenal products like Uniswap and Compound, and even more massive crypto options derivatives platforms.
It is not difficult to see that 321-Protocol has great ambitions and also very clear future deployment. Here, I will provide readers with an in-depth analysis of its advantages highlights.
01. Advantage 1: Lowering the threshold for DeFi options and contract derivatives
As we all know, the existing CEX/DEX derivatives trading: contract trading, leverage trading and option trading have complicated rules, slippage, easy to be manipulated and extremely high threshold of use, which makes it difficult for most cryptocurrency users to make decisions to participate and reduces it to an elite game among a few people.
However, 321 Protocol launched the inclusive options derivatives DeFi-BO: extremely fast to get started, no registration, no escrow, transparent clearing of smart contracts, risk hedging tools, profitable for both market ups and downs, minimal rules, subverting complex traditional contract trading, and for the first time, allowing ordinary users around the world to conveniently participate in DeFi options derivatives trading.
02. Advantage 2: The first DeFi option pool CC-LPP model
CC-LPP [Constant Coin Liquidity Provision Protocol] — Constant Coin-Liquidity Provision Protocol.
In the world of DeFi, liquidity is as precious as oil, everyone is competing for LP’s assets through various incentive programs, for LP users, CC-LPP liquidity model combines 4-in-1 advantages, creating liquidity through 321Swap smart contract exchange collateral coin issuance constant coin USD3 at the same time, providing liquidity mining revenue for LP, and LP has no collateral fall losses and upside treadmill risk, and the automatic sharing of 321 platform investment income can be used as chips to participate in 321 options derivatives contract trading at any time.
It is worth noting that CC-LPP solves the most basic problem of liquidity mining for DeFi users: the fear of staking locked coins such as ETH, BTC, DOT… The CC-LPP also avoids DeFi users’ anxiety when they are ready to enter into liquidity mining because of the unpredictable timing.
03.Advantage 3: Referral incentive and deflationary burn mechanism
321-Protocol has set up a deflationary burn mechanism, where 5% of each contract transfer to the winner’s pool will be placed in the deflationary burn pool as a deflationary burn reserve. Every 2 weeks (14 days), 321-Protocol will credit the deflationary burn reserve to UniSwap and Pancake Swap’s 321/ETH or 321/USDT trading pairs pool; and the repurchased 321 Token will be credited to 0X0000….dead address for destruction, which make all 321-holding customers enjoy the continuous value enhancement return incentive of 321-Protocol platform.
In addition to the core three advantages, 321-Protoco is committed to building a contract factory-liquidity factory to consolidate its ecological moat. Among them, 321-Protoco provides option derivatives risk hedging and speculative tools for all ERC20 crypto assets through factory contracts, and user can independently apply to open option derivatives trading for corresponding ERC20 tokens and independently issue BO options. And they can become option market makers to create new liquidity and unlimited DeFi derivatives play for ERC20 tokens.
It is not difficult to foresee that 321-Protoc will have the potential to become the largest DeFi options derivatives platform in terms of FTVL, just like Uniswap.
At the same time, 321-Protocol has been planning for the inclusive DeFi ecosystem for a long time, trying to fill the gap that is not present in the DeFi world at the moment.
Thus, 321-Protocol targets the market and tries to solve the challenge, namely, by lowering the market-making threshold of options, allowing new users to easily participate in options liquidity market-making without complicated hedging strategies, which not only minimizes the risk, but also serves as a solid source of income, and the back-testing data shows that it is a financial management method with fully controllable risk and considerable benefits.
Compared with other option products, 321 Protocol has created a unique CC-LPP liquidity protocol model, which can pool multiple different cryptocurrency (including stablecoin and non-stablecoin) collateral assets into a unified liquidity pool, backed by a unified constant coin to provide margin and liquidity, thus maximizing the aggregation of liquidity.
321 Protocol will provide option classes for Eth, Bitcoin, Dot and other mainstream coins. For ordinary users, they can participate in market making by simply putting stable coins USDT/USDC or non-stable coins ETH/BTC into the liquidity pool, and using one pool to provide liquidity for multiple crypto option derivatives can also maximize user risk avoidance.
321 Protocol, on the basis of DeFi-BO, will offer as many common crypto options categories as possible to attract more buyers. This not only means a richer pool of crypto underlying assets, in addition to mainstream cryptocurrencies such as Bitcoin and Ethereum (ETH), but also a variety of potential new stars such as DOT, LINK, DAI, etc. In the future, physical underlying assets such as oil and gold will even be added, thus reducing the risk correlation of the assets in the pool and diversifying the option classes for the same underlying asset.
In short, 321 Protocol has made options liquidity into a liquidity pool that anyone can participate in, where all options buyers are not betting against a certain seller, but are trading against the entire liquidity pool. By this way, the liquidity pool itself is hedged and diversified, and it is very easy for the average user to participate in.
The crypto options derivatives track is about to explode, and the focus of competition in the options market is essentially a liquidity grab. Only by attracting enough liquidity market makers will it be possible to offer richer options classes and more competitive option prices to attract more buyers. Meanwhile, liquidity has a network effect, and liquidity can generate more liquidity. The future winners must be insights into the spirit of open DeFi and incentive strategies that can attract ordinary people to participate in DeFi’s inclusive projects, and for crypto options derivatives, the core of inclusive DeFi is to provide liquidity.
Conclusion: CC-LPP Constant Coin-Liquidity Provision Protocol combines the advantages of 4-in-1, providing a powerful liquidity supply mechanism for 321-Protocol option derivative contract trading. 321Swap non-stable coin/USD3 exchange contract model helps LPs lock in the risk of non-stable coin price decline, while enjoying the price appreciation of the staking non-stable coin with no risk, and gaining USD3 can also be used as a chip to directly participate in option contract trading while receiving 321 exchange dividend equity. It goes without saying which is more profitable, holding tokens or providing liquidity in 321Swap through CC-LPP.