DeFi Dark Horse OXFUN: Building a New Gamified Perps Exchange

Key Takeaways

OXFUN is a new gamified perps exchange built around $OX.

It allows traders to leverage their entire portfolio to trade perps, including memecoins and crypto assets other exchanges do not offer.

$OX Coin has a maximum supply of 9.86B tokens, with 3.5B currently minted.

What Is OXFUN?

OXFUN is a new gamified perps exchange built around $OX. By denominating profit, loss, and liquidations in $OX rather than USD, OXFUN's design solves many of the risks historically associated with a portfolio margin architecture. It allows traders to leverage their entire portfolio to trade perps, including memecoins and crypto assets other exchanges do not offer, at industry-mogging collateral LTV. Furthermore, as memecoins surge in popularity during bull markets, OXFUN is expected to become the place traders can do the most with their holding. OXFUN also offers fully automated yield bearing trading strategies known as ‘Vaults’, which earn triple-digit APRs.

OXFUN's Design Principles and Advantages

$OX is the PNL currency of OXFUN. When users trade a perp on OXFUN, they gain/lose 100 $OX for every $1 price change, per contract, that the token goes up/down. E.g. if you bought 25 ETH perp contracts and the price of ETH goes up by $10, you'd have a PNL of 25 * 10 price change * 100 $OX = 25,000 $OX.

The effect is that for a given isolated perp position, $OX fluctuating in price will not change the liquidation price — while both the price of the perp and the price of $OX at the time will change the PNL. Traders may therefore experience both amplified upside + downside compared to USD denominated perps. E.g. if both $OX and a $BTC perp go up 2X, a trader may experience (before fees) 4X the gain. As well as this, all realized losses on OXFUN earn the trader $MILK token.

OXFUN's portfolio margin architecture and $OX PNL tokenomics enable the widest possible range of tokens to be listed as collateral. This allows OXFUN to onboard memecoins, utility tokens, and other volatile crypto assets as collateral that other exchanges are afraid to list, at industry-mogging LTV. With the explosive growth of memecoins in the future, OXFUN is poised to become the first choice for trading memecoins because it can provide memecoin holders with various financial services such as collateralization.

Moreover, OXFUN has a degen feed within the trading UI, which traders can choose to share their trade to, along with a message for others to see - displayed under their chosen name. Other users can see trades within the degen feed and choose to copy or counter them.

OXFUN can also host Battle Vaults, where 2, 4, or more traders go head to head in a trading competition — and OXFUN users can also stake their $OX in each participant's vault for a share of the winners earnings. For Battle Vaults, all OXFUN users have total visibility of all open positions, PNL, and trade history of each vault.

OXFUN’s has 2 other types of Vaults - the House vaults and the Player Vaults. Users can deposit $OX into House vaults to provide liquidity to OX’s market-making strategies and profit from losing traders, there are 2 House Vaults - a Majors vault which covers larger pairs listed on other CEXs, and a memecoin vault which trades the excotic meme pairs that OX supports. The Player Vaults support fully-automated leveraged grid trading strategies on either BTC, ETH or SOL, these strategies profit from market volatility, and depositors earn a share of 6,666,666 OX per day (200M OX per month).

OXFUN Tokenomics

$OX Coin has a maximum supply of 9.86B tokens, with 3.5B currently minted. Initial holder supply was minted via a 1:1 bridge to mint $OX Coin by burning Open Exchange ($OX v1) token. This 1:1 conversion closed on March 15, 2024. $OX must now be obtained on the open market, or through the "Buy OX" function on OXFUN.

In addition, OXFUN users can earn passive yield on their $OX by depositing it into any of the vaults, but will earn the most in the player vaults which share rewards with depositors. All fees from OXFUN are earned in $OX and are burned by the exchange. This can be tracked via the analytics page (https://analytics.ox.fun/). $OX is the ultimate form of collateral on the exchange with an LTV of 1, meaning you get full capital efficiency when using it as collateral.

Summary

OXFUN is building a perps exchange through various gamified approaches, which is quite innovative in today's DeFi market. Notably, memecoins are flourishing in the recent bull market. With OX as its PNL currency, OXFUN provides various financial services like staking for memecoins, which positions it as the first choice for trading memecoins. As memecoins continue to develop, OXFUN is poised to become a dark horse in the DeFi sector.