Oxygen, based in London, is set to launch the blockchain platform meant for the repurchase of agreements, Repos. This platform is touted as the first of its kind by the project leaders who also founded Changelly, an instant crypto exchange that now has over 1.6 million users.
People using Oxygen will get the benefits of the crypto holdings that will generate an income for them, increase liquidity of the holdings, and getting directional investments views that will help them get a wider look of the crypto market.
Monetizing Crypto-Assets with Repos
For those who are interested in short-term capital, Repos in their way. Repos can be seen as an equivalent of loan collateral. Dealers need to provide securities that will be collateral for a payment that is agreed upon by the dealer when committing to repurchase the securities at a later date and at a higher price, this being a payment for the interest.
The main target for Oxygen is the broad range of crypto asset holders who have a variety of economic goals. These asset holders include token holders who want to gain more income or gain access to capital themselves. There are also those looking make more from money from their portfolios by lending them to others in return for a payment.
‘CryptoRepo’ transactions are just like other repurchase agreement only that in this case, there is borrowing of cryptocurrency. In this case, the borrower commits to returning the lender’s crypto with interest at a later date. Besides, this transaction will take advantage of the smart contract since it is based on the Ethereum blockchain.
The said smart contract will enable clearance and settlement of purchases because they act as automated clearance houses. These smart contracts will initiate the repo when creditors and lenders send loan assets and collateral to the smart contract’s address. The collateral will be locked in and the loan disbursed to the borrower.
Oxygen supports all the ERC20 standard tokens but the cross-chain solution is in the development stages. Once the development is complete, it will be integrated in the system and Bitcoin, Litecoin, Ethereum and other altcoins will be availed.