Consumer expertise has been a longstanding downside in cryptocurrency. Early adopters have accepted many points that simply don’t exist in conventional monetary markets, together with friction with onboarding, gradual block affirmation instances, and change outages.
Nevertheless, maybe one of the vital UX points for cryptocurrency merchants and traders is liquidity. The cryptocurrency markets are closely fragmented, with every change working as a digital silo, unconnected to the others. It might probably even be the case that if you wish to commerce a specific altcoin, it’s essential to transfer funds between a number of exchanges merely to entry the token you want.
Now, we’re in a brand new period of adoption, with establishments looking for to achieve publicity to the quickly rising digital asset markets. From an institutional standpoint, liquidity is an much more vital problem. In a fragmented change panorama, the liquidity of a preferred buying and selling pair like BTC-USD or ETH-USD is just as deep as the amount on the largest change.
Moreover, there are sometimes non-negligible worth variations between exchanges and no simple method for a dealer to make sure that they’re all the time getting the most effective worth. Trackers companies like CoinGecko or CoinMarketCap might present averages and market overviews. However with the quick tempo of actions within the crypto markets, customers danger slippage in the event that they’re leaping round between completely different interfaces and companies.
Subsequently, with BTC on a seemingly unending tear and institutional and retail newcomers flocking to the area, there’s by no means been a greater time to repair the liquidity problem as soon as and for all.
OpenOcean is the one full market aggregator that gives customers a single interface to entry liquidity throughout centralized and decentralized exchanges. It makes use of an clever routing algorithm to search out the most effective worth for any asset throughout all exchanges, with the bottom danger of slippage.
The algorithm is an optimized model of Dijkstra’s algorithm designed to search out the shortest route between factors on a graph. OpenOcean applies its model of the algorithm, referred to as D-star, to search out the most effective costs with decrease slippage after which splits routing between completely different protocols for higher transaction charges. The web outcome for customers is the most effective worth with the bottom slippage in real-time throughout an energetic commerce.
Merchants have the choice of utilizing both the “Traditional” interface, with is an easy field permitting customers to entry token swaps, or the “Professional” interface, which gives full market visibility throughout all CEXs and DEXs. Professional merchants also can plug into the protocol utilizing the API.
There are not any charges for utilizing the protocol. Nevertheless, institutional traders wishing to reap the benefits of customized UIs and funding technique execution are charged for setup.
Roadmap and Milestones
On the time of writing, OpenOcean has built-in 4 blockchains: Ethereum, Binance Good Chain, Ontology, and TRON. Subsequently, it aggregates liquidity from all DEXs working on these platforms. It additionally plans to combine the Polkadot, Solana, and NEO blockchains.
Binance is the primary centralized change to change into built-in, with plans for Coinbase and Deribit to observe.
The roadmap for OpenOcean is break up into 4 phases, dubbed Antarctic Ocean, Indian Ocean, Atlantic Ocean, and Pacific Ocean.
Antarctic Ocean concerned aggregating DEXs working on Ethereum, BSC, and Ontology. This section is already accomplished. Indian Ocean continued with cross-chain aggregation of swaps, aggregated spot merchandise on CEXs, and the issuance of the OOE governance token. Indian Ocean accomplished on the finish of March 2021.
The present section, Atlantic Ocean, is longer and can run till the top of the primary half of 2022. It is going to herald a number of updates, together with introducing CeFi futures merchandise, aggregating DeFi derivatives, and cross-chain mixed margin swimming pools. We are able to additionally anticipate to see extra centralized exchanges and blockchain platforms be a part of OpenOcean because the roadmap progresses.
The ultimate section, Pacific Ocean, will run from July 2022 till 2023. The last word aim is to launch OpenOcean as a full clever asset administration platform overlaying your complete spectrum of centralized and decentralized monetary options.
In early March, OpenOcean accomplished a strategic fundraising spherical led by Binance. A couple of weeks later, the corporate confirmed that it had made a personal placement of shares to a specific group of traders, together with Altonomy and LD Capital, each of which participated within the funding spherical.
The OOE token gives a number of utilities, along with its perform as a protocol governance token. In future, OOE holders will profit from gasoline and slippage subsidies, leading to minimal buying and selling prices. Holding OOE additionally confers CEX VIP membership, which incorporates advantages similar to charge premiums and lowered buying and selling charges and token withdrawals.
As OpenOcean delivers on its roadmap milestones of integrating derivatives merchandise, OOE holders will have the ability to deploy their tokens as margin in mixed margin merchandise, enabling one-stop derivatives buying and selling throughout exchanges. Tokens may also be used as collateral for lending.
The challenge is at present engaged in an airdrop of 1% of its OOE tokens to early customers. 34% of the overall OOE provide is allotted to the distribution of liquidity mining rewards over the following 5 years. OpenOcean will function swimming pools on DEXs in numerous public chains it aggregates on the protocol, together with Ethereum, Binance Good Chain, Ontology, and Tron. OOE swimming pools will embody pairs with DAI, ETH, USDT, BNB, and others.
OpenOcean was based by Leo Xue and Cindy Wu. Leo Xue brings expertise from Intel and the China Monetary Futures Alternate, the place he led the staff creating the buying and selling system. He began researching cryptocurrency protocols in 2015.
Cindy Wu was previously a technique supervisor at RBS, and M&A supervisor on the 3M firm. She additionally labored at a personal fairness fund as a senior funding director. She holds a Masters in Superior Finance from the IE Enterprise College.
Liquidity in cryptocurrency is a respectable downside, and OpenOcean is the one aggregator of its variety looking for to pool liquidity from throughout your complete cryptocurrency markets. Subsequently, it has an apparent worth proposition that may enchantment to cryptocurrency customers throughout the spectrum. If the challenge delivers on its bold roadmap, it is going to occupy an advantageous place available in the market – one which others will undoubtedly try to copy.