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Oliva Futures on OEX

Oliva Futures issues first decentralized olive oil derivatives on the Opium Platform

Why we need decentralized derivatives?

A lot has changed since the first financial derivatives contracts were issued. Several centuries ago, rice futures were issued on the Dojima Rice Exchange as one of the first financial derivative products. Today, such derivatives are a crucial part of our global financial system. They are financial instruments that allow market participants to manage their risk without sacrificing potential returns.

Simply put, derivatives allow market participants (traders, hedge funds, etc) to “hedge” against certain market risks in order to prevent massive losses in the case of unforeseen events such as high price volatility. While derivatives were initially used for commodities like rice or grain, they are now leveraged to hedge risks on several assets like stocks and even cryptocurrencies.

The decentralized finance (DeFi) sector took the world by storm in 2020. Smart contracts allow for market participants to cut out middlemen and rely on trustless contracts that ensure faster, cheaper and safer settlements, which now brings us to 2021 — the year of decentralized derivatives.

What is Opium.exchange?

Opium Protocol is a decentralized derivatives platform built on Ethereum. Founded in 2017, the Opium Protocol and Opium Exchange has been in the works for quite some time. It's a complex system that aims to bring a user-friendly experience for the masses. Decentralized derivatives have many advantages over traditional ones, especially when it comes to access, fees, and security.

The Opium Exchange will allow anyone to issue and trade decentralized derivative instruments, like futures or options, without any counterparty risk in a fully permissionless environment — which can help retail users circumvent local restrictions and take full control of their financial freedom. Moreover, derivatives issuers will also benefit from lower prices and faster issuance times.

The Opium protocol will bring many opportunities to the world of DeFi, allowing anyone to issue any type of derivative.

What are Oliva Futures?

Olivia Futures is a startup that will be issuing the first-ever decentralized olive oil futures product. The product is built on the Opium Protocol and will be available for trading on the Opium Exchange.

Olivia Futures is one out of four external companies that are aiming to bring their derivative ideas to Opium. By leveraging the Opium Protocol system, Olivia Futures will save millions in the issuance process, which will be streamlined in a matter of minutes. An astounding achievement in the world of financial instruments.

Olivia Futures is seizing an opportunity created by the current state of the Spanish olive oil market: The need for financial instruments that can help market participants hedge against the risks caused by volatility of olive oil product prices.

The aforementioned issues come from the very strict regulations and requirements imposed by local watchdogs. Moreover, the COVID-19 crisis led to an extremely volatile market for this and other commodities, causing immeasurable damage to olive oil producers. Decentralization is the only viable option to hedge against production risks and the Opium Exchange will provide an easy-to-use platform that anyone can leverage

How to trade Oliva Futures ticker on Opium.Exchange?

Now that the raison d’être of the product is clear, let’s explain how to obtain it!. Decentralized olive oil derivatives isn’t an idea, it’s a readily available product that can now be tested on the Opium Exchange. In the steps below, we’ll show you how to trade these products.

Opium Exchange: A test guide to trading olive oil derivatives on the Opium Exchange

Step 1: Go to test.opium.exchange AND press “CONNECT WALLET”.

Step 2: Once you choose the wallet you’d like to connect, you will be prompted to confirm the message. Please confirm the message as seen below.

Step 3: Choose the account you want to connect.

Step 4: Sign the login message

Step 5: In order to start ‘paper trading’, you’ll need to acquire some test DAI coins. For that, you will need to contact us and provide your wallet address on Rinkeby Test Network. Once this is done, our support team members will send you test DAI coins directly which can be used for test trading.

Step 6: Once the previous step is completed, you’ll need to enable your test DAI tokens to facilitate trades which will be subsequently specified by you.

Step 7: Allow the Opium exchange to spend your DAI by clicking “Confirm”

Step 8: Go to the “Exchange” page and you will now be ready to start trading!

Step 9: You’ll need to find and choose the Oliva futures ticker. Each ticker has a description of the contract terms on the Exchange page and detailed description in the Derivatives Explorer page.

Step 10: On the “trade” section, you can choose a price and quantity you want to trade and select “place buy order”.

Step 11: After that, you will see a pop up with detailed information about your order.

Step 12: Sign the message in your wallet to place the order.

Step 13: Your open orders are visible in the “orders” section. Every order is delivered instantly to the order book, but when it is settled you need the blockchain to confirm it. That is why settlement executions take a few seconds for the final and trustless confirmation.

Step 14: After your order is matched, the trade will be confirmed on the Ethereum blockchain. The trade will appear in the section “trade history”

Step 15: When your order is not yet matched, you can still cancel it. Once the trade is settled on the blockchain, you won’t be able to cancel it.

16. After you buy a derivative, it is shown in “My account” under the “Derivatives” tab. You can see the number of contracts that you hold, the ticker, type of the position (long or short) and perform some actions: wrapping several positions into one portfolio-token (to operate with it as one position), sending tokens to another address or executing expired position (to receive your profit or loss).

Stay tuned

Opium is a universal and robust DeFi protocol that allows for creating, settling, and trading decentralized derivatives.

Explore Opium Protocol or try out Opium Finance.

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