Review on Opium Network by Pedro O. Alvino M.
Trading derivatives markets and DeFi products
Developed by a self-financed company, it has a centralized network as a basis for the ecosystem to be sustainable, this as the governance network is implemented that allows users greater liquidity after greater creation of derivative contracts thanks to its protocol, In addition, its exchange service and Swap rate are the main function of the platform.
The Opium exchange is an ecosystem that serves for users to trade a large number of derivative products openly, which together with the Swap Rate product can hedge or speculate on interest and rate fluctuations in the DeFi money markets, which They are currently very popular given the benefits they get from it, but unlike traditional exchanges and DeFi projects, Opium is carrying a large number of options that allow the operator to trade either financial derivatives and DeFi merchant without risk.
Developed on the Ethereum network, it can have a certain scalability impact when using the ERC-20 token given the high fee charged for the high demand for the network in Ethereum, which for some may be a loss in the case of a limited capital.
Pros
- Any user can use Opium to build and launch decentralized financial derivatives contracts
- Designed to be combined with DeFi markets and traditional financial markets.
- It has interoperability between chains.
- Includes a fee mechanism that charges the for-profit trader a small commission per traded derivative contract.
- Its protocol is compatible for use by various decentralized applications.
Cons
- Its development in the Ethereum network can create network congestion given the high commission for token transfers.
- Very little technical information and use of the native token.
- They are in full development.
- It is not adapted for inexperienced operators.
