A Comprehensive Overview of Octopus Protocol Products

A glimpse of the innovative products under the Octopus Protocol Ecosystem

Octopus Protocol
4 min readMay 6, 2021

As of 2020, the overall derivatives market had a market cap of $1.2 quadrillion or $1200 trillion — about 3000 times larger than the current market cap of the cryptocurrency market. Yet, the conventional derivatives market is highly restrictive in terms of geographical limitation and accessibility. Moreover, the entire system is largely trust-based and holds unfair advantages to a limited group.

Decentralized Finance or DeFi shows promising applications to disrupt the traditional derivatives industry. From enabling a decentralized network to a trustless architecture — DeFi holds possibilities for revolution of the $1.2 quadrillion derivatives industry. The potential use-cases of decentralized finance in derivatives have led to a rise in Total Value Locked (TVL) from $132 million in April 2020 to more than $2.6 billion in April 2021. Octopus Protocol, a robust DeFi protocol, leverages technological innovations to allow issuance, trade, and management of decentralized derivative assets.

Octopus Protocol facilitates a platform that offers unparalleled access and exposure to real-world assets thereby enabling a fair way to engage with synthetic assets and giving equal opportunities to access derivatives.

Octopus Protocol Products

The ecosystem of Octopus Protocol encompasses four unique products that facilitate the exchange, management, and settlement of decentralized derivatives. Moreover, the platform offers a multitude of a trader’s tools to engage with derivatives under one umbrella so as to create a seamless experience for users.

1. Decentralized Derivatives Exchange

Octopus provides an architecture for secure and automated exchange of decentralized derivatives in a trustless environment. It facilitates a permissionless way to exchange and settle derivatives without any third-party intermediaries or centralized entity governing operations.

Octopus Protocol facilitates the creation and issuance of synthetic assets by locking collateral on its platform. The DeFi protocol facilitates the exchange of synthetic tokens through the decentralized derivatives exchange platform.

  • Trade Derivatives — Trade synthetic assets which are pegged to real-world assets like gold, bonds, stocks, equities, and even cryptocurrencies with tight trading spreads, low margin requirements, and innovative hedge instruments that do not liquidate assets prior to settlement.
  • Non-Custodial Wallet — Octopus is a non-custodial platform thereby giving complete control to users over their digital assets. Users can keep a track of their trades and oversee trading portfolio from the Octopus wallet.
  • Minimum Collateral — Leverage affordable solutions to create synthetic assets from Octopus. The inherent architecture requires minimum collateral in exchange for the creation of synthetic assets.
  • Trustless Architecture — Exchange derivatives on an infrastructure that offers the best class features of a centralized exchange such as deep liquidity on a decentralized and permissionless architecture.
  • Minimal Trading Fees — Trade derivatives with users at minimal trading fees on a peer-to-peer network.
  • Staking — Earn the native token — $OPS by engaging in the staking mechanism available on the Octopus platform.

2. Decentralized Asset Management

The decentralized asset management product from Octopus enables a transparent, open, and fair method of settling synthetic assets on its exchange by connecting investors to asset managers.

  • Transparency — Leverage a fairly transparent way for investors to engage with asset managers for the management of their trading portfolio.
  • Tested-Tools — Get first-hand access to tools to create, rebalance, and manage your crypto portfolio.
  • Track History — View the complete history of asset managers before choosing to invest your funds into their baskets.
  • Diversify — Diversify your trading portfolio to encompass a multitude of synthetic assets including Gold, digital assets, indices, stocks, etc.

3. Social Trading

The social trading product of Octopus facilitates beginners to get access to strategies and trades of expert traders. The feature facilitates beginners to gain the leading expertise and insights of experienced traders.

  • Tool for Beginners — Novice traders, can use social trading and access the best trading experience by following the trading patterns of expert traders in the industry.
  • Follow Expert Trades — With social trading, any user can follow trades, patterns, strategies, and plans of experienced traders.
  • Performance — A user has complete transparency to oversee the performance of collective strategies, how they are set up, and operated.
  • Secure — The entire process of leveraging social trading is low-cost and ensures complete security.

4. Options Trading

The fourth product from Octopus Protocol is options trading. Options trading, a type of derivative, offers an investor the right but not obligation to buy or sell an underlying asset at a predetermined price at the set expiration date.

From Octopus, leverage the following benefits while engaging with options trading product.

  • Hedging — Options trading allows an investor to seek financial gains and minimize the price risk of any asset against a change in market conditions.
  • Swap Assets — Octopus ensures no restrictions on the swapping of synthetic assets. Users can choose their preferred trading pairs with options trading.
  • Competitive Market Fees — Settle options contracts on Octopus with best-class services, including a competitive rate for settlement fees, which is a small portion of the underlying asset value.
  • Onboarding — Octopus encompasses a permissionless infrastructure for engagement with the protocol. The process for onboarding has minimal requirements to access products and services.

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Octopus Protocol

Octopus Protocol, a robust DeFi protocol built on the BSC, allows issuance, trade, and management of decentralized derivative assets. https://octopus.exchange