Oikos

Oikos is a decentralised synthetic asset issuance protocol built on Binance Smart Chain. 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 DEX’s. Oikos currently supports synthetic fiat currencies, cryptocurrencies (long and short) and commodities. OKS holders are incentivised to stake their tokens as they are paid a pro-rata portion of the fees generated through activity on Oikos.Exchange, based on their contribution to the network. It is the right to participate in the network and capture fees generated from Synth exchanges, from which the value of the OKS token is derived. Trading on Oikos.Exchange does not require the trader to hold OKS.

All Synths are backed by OKS tokens. Synths are minted when OKS holders stake their OKS as collateral using Minter, a decentralised application for interacting with the Oikos contracts. Synths are currently backed by a 500% collateralisation ratio, although this may be raised or lowered in the future through community governance mechanisms. OKS stakers incur debt when they mint Synths, and to exit the system (i.e. unlock their OKS) they must pay back this debt by burning Synths.

Oikos is also currently trialling BNB as an alternative form of collateral. This means traders can borrow Synths against their BNB and begin trading immediately, rather than needing to sell their BNB. Staking BNB requires a collateralisation ratio of 150% and creates a debt denominated in BNB, so BNB stakers mint oBNB rather than oUSD and do not participate in the ‘pooled debt’ aspect of the system. In this model, BNB stakers do not receive fees or rewards as they take no risk for the debt pool.