Su Zhu: oUSD Credit stablecoin Inspired By 2 Failed Stablecoins UST And FTT

Key Points:

• OPNX founder Su Zhu said that the oUSD credit stablecoin launched by OPNX was inspired by UST and FTT.
• According to Su Zhu, UST, and FTT, many techniques exist to avoid bank runaways. This creates a critical structural vulnerability and personal risk.
• oUSD inherits properties of provable solvency and provable liquidation.

Three Arrows Capital and OPNX founder Su Zhu, said on Twitter that the oUSD credit stablecoin launched by OPNX was inspired by UST and FTT (negative case).

According to the OPNX founder, UST is a passive sink for investors, but the capital utilization rate is shallow, while FTT has a great borrowing demand. Still, Genesis and FTX users are lenders only naturally. The UST failed to issue enough active bonds, leading to a death spiral without a natural buyer. There were many techniques to avoid bank runaways in the UST and FTT cases. This creates a critical structural vulnerability and personal risk.

The margin currency should be the account’s unit, replicating the extremely stable derivative structure that OKX has had for many years, i.e., continuously socializing risk into a profit pool. As a result, OPNX uses oUSD to inherit the properties of provable solvency instantly, and provable liquidity (especially proof of non-liquidity that cannot be liquidity), and all client assets are on-chain, allowing it to avoid the risk of force majeure events calmly.

Earlier, the OPNX exchange announced that they would launch the first Launchpad project, and oUSD will be available soon. Users can use USDT 1:1 from an unlimited oUSD purchase agreement. Its function acts as margin and PNL for all OPNX currency futures contracts (profit and loss).

After hiding for a while after the investment fund Three Arrows Capital collapsed, two infamous founders Su Zhu and Kyle Davis shook hands with the two founders of CoinFLEX, raising $25 million to start building an exchange called the exchange OPNX.

According to the introduction from the project, OPNX carries a “beautiful ideal”, born to fill the wounds of creditors who were victims of the crashes of FTX, Celsius, BlockFi, and Mt.Gox…

Specifically, the victims (and current creditors) of FTX, Celsisus… instead of just keeping the debt until the date of compensation (unknown when), the GTX floor offers creditors two other options. : resell debt in exchange for USDG cryptocurrency – a form of credit asset or used for leveraged trading.

Not only was the founder of Three Arrows Capital scandalous, but CoinFLEX, the unit that cooperated to build OPNX, also had financial problems and filed for restructuring in August 2022 after the crypto crisis, making the company The company was forced to delay the withdrawal.

Since the GTX floor information appeared, Su Zhu has continuously received satire from the public opinion of investors, project leaders in the industry, and the media.

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