Ooki is proud to announce the launch of version 2.0 of the leading DeFi margin trading platform enabling fast, easy to use DeFi services.
Ooki is a powerful and fully decentralized margin trading, borrowing, and lending platform with a ton of features. The protocol is completely open source, which allows anyone to interact with a user interface client, API or directly with the smart contracts on any of the chains where Ooki protocol is deployed.
With the launch of Ooki 2.0, Ooki is introducing many new features to make the best DeFi margin trading, borrowing, and lending platform even better. Ooki 2.0 includes long awaited features such as:
- Dynamic interest rate engine
- Removal of rollovers
- Dex selector
- New trading pairs
- Vote delegation
- UI refreshes
- Flash loans
Below we will explore in further detail each one of these features, and how they work.
Dynamic Interest Rate Engine
Ooki’s new dynamic interest rates will improve the experience for borrowers and lenders by introducing a variety of significant overhauls to how lending and borrowing rates are calculated. The mechanism will dynamically adjust rates to ensure borrowers and lenders receive optimal rates when opening new positions on Ooki. The dynamic interest rate engine targets an 80% utilization rate and will keep pools optimally utilized. It offers variable rate, indefinite term loans, instead of fixed-rate loans with 28-day rollovers. The rate model uses a dynamically changing curve.
In Ooki’s new interest rate mechanism, rates are reactive and are optimized for 80% utilization. A utilization rate of 80% is targeted and interest rates adjust in real-time to target this rate depending on total utilization of lending pools. The main goal of Ooki's interest rate mechanism is to ensure borrowers and lenders receive optimal rates when opening new positions on Ooki.
On Ooki, anyone can borrow and lend with a fully decentralized platform. Lenders can add liquidity and earn interest. Meanwhile borrowers can add collateral in order to borrow funds, effectively paying interest to lenders.
The benefits of borrowing include maintaining the upside potential value of holding assets, while obtaining liquidity without selling your assets. Borrowing can be used to pay expenses, or leverage holdings, or margin trading.
New Dex Selector
The next big feature Ooki is releasing with version 2.0 is the dex selector. The dex selector is a new tool that is being offered to margin traders to aid in better execution for trades. This allows users to specify and select different DEXes for where their trade will occur to get the best trading price.
This feature will be supporting order execution on the following AMM’s: SushiSwap, Uniswap v2 and v3, Pancakeswap, and Quickswap. Planned future supported DEXes are Curve and Kyber with their newly released aggregator. Initially, users will be routed to the default AMM, and later users will be able to manually select which AMM they prefer. The AMM chosen for execution will likely be driven by which AMM has the best price for that asset at that given moment.
How does the Dex Selector Work?
The dex selector continuously checks the prices on leading AMM’s (Automated Market Makers) and routes the traders order through an AMM offering the best price. The AMM chosen for execution is driven by comparing price and liquidity for the asset across multiple AMM’s and executing the order on the optimal AMM.
Here is an example of how it works: When a trader inputs a trading pair, for instance, ETH to DAI, Ooki’s dex selector compares the available rates for the pair on each exchange (accounting for the traders transaction's volume) and then executes the trade wherever it finds the best rate. The result of this smart order routing is optimal order execution ensuring traders maximize profitability.
Initially, the UI will only display SushiSwap and will only route transactions through SushiSwap. Later we will add support for the other trade execution sources such as Uniswap v3. The dex selector will initially be deployed on Polygon, BSC, and Arbitrum and later expanded to other deployments.
Ooki Protocol gives developers and pro users the ability to use flash loans. Flash loans are an uncollateralized loan option designed for developers. Flash loans enable users to borrow instantly and easily with zero collateral obligations, provided that the liquidity is returned to the pool within one transaction block. Use-cases include arbitrage, collateral swapping, self-liquidation, and much more.
When Ooki introduced this feature, flash loans did not charge any fees. With Ooki 2.0, Ooki has started charging a fee for flash loans. As a result of this, Ooki stakers will also be receiving the rewards from these flash loans fees.
On Ooki 2.0 the fee for flash loans is 0.03%. Developers utilizing bots must take this fee structure into account when designing their flash loan strategies, so they can make sure their flash loan is profitable.
New Trading Pairs
With this new release, Ooki will be adding new trading pairs for margin trading on Arbitrum bringing the total number of trading pairs across all chains to over 70. These new pairs will include MIM + Spell. They are available for trading on Arbitrum, and Ethereum. Positions can be opened long or short with up to 5x leverage for Spell pairs and 15x leverage on MIM pairs. Additionally, APE/ETH pairs will be added for margin short and long trading.
Another exciting feature launching with Ooki 2.0 is vote and delegate voting functionality. This feature enables voting power to be delegated to any Ethereum address.
Benefits of Delegating:
- If you otherwise weren't planning to vote, your voting power will be used to vote on Ooki DAO Proposals by the person you’ve delegated to.
- If you don’t have time to remain active, or participate in governance, you can choose an active community member to vote for you.
- If you have a small amount of tokens, delegating voting power is a less expensive way of participating in governance because when you delegate your vote, you don't need to pay gas fees each time you vote for a proposal.
Deploying on Arbitrum
Ooki 2.0 is also launching on Arbitrum. Due to recent high gas fees affecting L1 Ethereum, there has been enormous demand for Layer 2 solutions like Arbitrum to provide a viable alternative to the expensive and volatile gas market on Layer 1. Arbitrum is a Layer 2 scaling solution built on Ethereum which aims to reduce transaction fees and congestion by moving as much computation and data storage off of Ethereum’s main blockchain (Layer 1) as it can. At the moment, Layer 2 projects like Arbitrum are expected to be vital stop-gap solutions for Ethereum’s scalability crisis.
Ooki is delivering financial independence by reinventing financial services for a decentralized future.