OIKOS NETWORK TOKEN: A WELL DEVELOPED DECENTRALISED SYNTHETIC ASSET

3 min readJul 17, 2020

INTRODUCTION

I hereby want to use this platform to introduce a well decentralised synthetic asset built on Tron Network. In the blockchain ecosystem, there are diverse ways by which asset can be held through different trading platforms or buying directly from developers through private or public sale. Tokenisation of asset through cryptocurrency is definitely the future and the earlier its adoption, the better.

MEANING OF OIKOS

Oikos is a platform enabling the creation of on-chain synthetic assets that give exposure to other assets by tracking their real-world price. Some examples are fiat currencies and commodities like gold and silver. Oikos is a decentralised synthetic asset issuance protocol built on Tron. These synthetic assets are collateralized by the Oikos Network Token (OKS) which when locked in the contract enables the issuance of synthetic assets (Synths). This pooled collateral model enables users to perform conversions between Synths directly with the smart contract, avoiding the need for counterparties. This mechanism solves the liquidity and slippage issues experienced by Decentralized Exchange Platforms. Decentralization and security are important factors at play: when trading synths, all activity happens with smart contracts. Security is guaranteed by regular code audits and counterparty risk is almost entirely absent.

ADVANTAGES OF HOLDING OKS

Oikos Network Token are beneficial to its holders in several ways; firstly, there are exchange rewards that are attached to holding OKS. These are generated whenever an holder exchanges one Synth to another the on Oikos.Exchange platform. Individual trade generates an exchange fee that is sent to a fee pool, available for OKS stakers to claim their proportion each week. This fee is between 10–100 bps (0.1% — 1%, though typically 0.3%), and will be displayed during any trade on Oikos.Exchange. The other incentive for OKS holders to stake/mint is OKS staking rewards, which comes from the protocol’s inflationary monetary policy. OKS tokens have a built-in inflationary supply schedule. These OKS tokens are distributed to OKS stakers weekly on a pro-rata basis provided their collateralisation ratio does not fall below the target threshold.

MECHANISMS OF SYNTH PEGGING

There are three (3) methods by which synth peg can be maintained:

Arbitrage: OKS stakers have created debt by minting Synths, so if the peg drops they can now profit by buying sUSD back below par and burning it to reduce their debt, as the Oikos system always values 1 sUSD at $1 USDsTRX

Liquidity Pool on Oikos Swap: every week, a portion of the OKS added to the total supply through the inflationary monetary policy is distributed as reward to people providing sTRX/TRX liquidity on Oikos Swap. This has incentivised liquidity providers to collectively create the largest liquidity pool on Oikos Swap (at time of writing), allowing traders to purchase Synths to start trading or sell Synths to take profits.

OKS Auction: Oikos is currently trialling a new mechanism with the dFusion protocol (from Gnosis) in which discounted OKS is sold at auction for TRX, which is then used to purchase Synths below the peg

The Team

Oikos team is made up of competent, ambitious and intelligent resource persons: