At the center of the growing crypto world is decentralized finance (DeFi). And one of the latest entrants in the OOKI platform. Established in 2021, the DeFi platform enables users to stake, borrow, lend and access margin trading on various blockchains. You can choose to complete your transactions on Ethereum, Polygon, or Arbitrum.
Ooki derives its massive growth potential from its incredible use cases, because of these Ooki long-term predictions have very strong positive sentiment. But what are Ooki’s top utilities?
Ooki is a highly flexible, community-run, and governed DeFi protocol. The protocol’s governance token is OOKI, which allows the community to vote for major changes in the protocol. Through voting, governance and fee-sharing, the holders control and secure the protocol.
Lend and Borrow
The Defi finance platform allows the community members to borrow cryptocurrencies at competitive fees or lend digital tokens to earn interest. Interest is based on the current APY.
The fees from the transactions are divided by half, with 50% going to the stakers, while the other half is distributed to the treasury and insurance fund.
You can stake OOKI on Ethereum, BSC, and polygon. The Ooki app allows you to stake on Ethereum and earn interest from gas fees generated by the Ethereum chain. Alternatively, you can stake in the OOKI pool to earn interest from the Binance Smart Chain (BSC). Polygon farming pages give you rewards from the chain’s gas fees. OOKI holders get part of the fees charged on the DeFi protocol.
The open-source protocol is focused on offering interoperability. This means you can complete transactions across various blockchains, including BSC, Arbitrum, and Ethereum. The open-source feature allows users to interact with the smart API, user interface, or smart contracts of the chain where the protocol is deployed.
Ooki allows margin trading through an innovative Fulcrum platform. It also has a non-custodial solution that allows the holders to control their assets and keys when trading or lending. Traders hold the assets using private keys and require no verification, AML, or KYC.
A glance at the future
Ooki has a decentralized autonomous organization (DAO) focused on growing the protocol by funding critical development projects and rewarding contributors. The proposals go through discussion, and after consensus, it proceeds to snapshot voting and eventually chain voting.
Currently, OOKI is trading at $0.01099019 and has lined up various projects and changes that will revolutionize the protocol. CryptoPredictions.com forecast shows the price could eventually grow to a maximum price of $0.045 by 2026.
Could its price go back to the all-time highs of $1.800? This scenario would represent 10000% growth. Growth is not far-fetched, considering relatively new cryptos like GMT have realized over a 30000% increase in a month.
Recently, OOKI jumped from $0.01499 to reach a high of $0.02528 in 24 hours. The massive surge was precipitated by the launch of Ooki stage 4, accompanied by the introduction of Ooki staking. Without a doubt, it caught the attention of traders.
Ooki, the protocol keeps renovating in a bid to give users a more streamlined experience. With the latest upgrade, its adoption is set to head upwards and pull the crypto value.
The much awaited version 2.0 upgrade
Version 2.0, launched on 3rd March 2022, brings a host of incredible features to enhance the platform. Below are the most notable.
A New Dynamic Interest Engine
Primarily, the Ooki platform will use variable interest rates approach engine to ensure lenders and borrowers receive optimal rates. The dynamic interest rates curve introduces new methods of calculating interest rates to boost liquidity pool growth.
Removal of Rollovers
The new rates system has eliminated the rollover fees. Initially, rollover occurred every 28 days where a portion of the borrower’s collateral would be liquidated to cover outstanding fees. The rollover would also attract additional costs, such as rewards for participants who triggered the rollover.
Going forward, the protocol won’t sell any collateral if the positive fall below margin requirements. Instead, the loan size will be allowed to grow block by block.
Variable Interest Rate
Initially, borrowing and lending interest rates were fixed. With new changes, rates will fluctuate in real-time depending on liquidity pool utilization. The dynamic interest rate will increase proportionately with the increase in pool utilization. This will ensure lenders and borrowers receive the best rates.
New Trading Pairs
The new version release will add new trading pairs to reach 70, including MIM+Spell. Traders will have wide options of trading pairs. They can choose to short or go long in the Arbitrum and Ethereum chains. MIM pairs will have 15X leverage, while Spell pairs will attract a 5X leverage.
Flash loans provide developers with instant access to loans without any collateral. However, the liquidity should be returned in one block to the pool. The use case of these loans includes Collateral swapping, self-liquidation, and arbitrage. Stakers will get profits from the loan fees.
Dex selector is an innovative feature that enables margin traders to execute trades better. Traders can choose a specific DEX with the best prices. The features support Kyber and Curve decentralized exchanges and SushiSwAP, Uniswap V2, and V3 AMMs. Typically, the protocol will choose the AMM with the best price by default, but you can always manually choose the AMM that you prefer. The transitions will be routed through Uniswap.
Why you should care
Crypto experts predict that the
could be worth more than $800 billion by 2022. It is one of the crypto and blockchain industry areas with the biggest growth potential. Ooki has planned a host of features that positions it among the leaders in the DeFi industry.
On the flipside
Ooki has suffered low acceptance, with the market trending sideways near the lows. In fact, it has plunged massively from all-time highs. Investors are watching from the periphery to see if the new changes will make any meaningful change to the value growth.
Ooki aims to enhance financial services with a decentralized approach to provide financial independence. It comes with a decentralized autonomous organization that governs the protocol, making it secure. Ooki is making its presence known in the crypto world. Every crypto investor with an eye on revolutionary digital tokens will want to keep an eye on Ooki.