Introduction

The blockchain industry needs derivatives

The derivative markets date back centuries and today represent a critically important part of a fully functioning, sustainable, and scalable financial system. A vital source of risk management and economic leverage, Opus knows the important role options will play in the blockchain industry’s ability to mature and scale into a commercially viable and fully adopted marketplace.

Traditional venues are expensive to maintain

Although the largest and most utilitarian marketplace, the OTC sales and trading industry is expensive to manage, excludes many in favor of the few, and skims approximately $140 billion from customers every year.

This is no longer tolerable and technology has made it untenable, and Opus is deploying its 25 years of traditional markets and distributed data management and cybersecurity experience to simultaneously eliminate billions in yearly overhead costs and pass the savings on to its customers through fair dealing for all.

Current DeFi solutions are inefficient

However, current decentralized exchanges have a myriad of problems. DEX models which require full decentralization and anonymity will not survive in their current form, for a variety of reasons:

• These protocols raise concerns regarding investor protection, market manipulation and compliance with AML/KYC standards.

• The constant formula AMMs which run these digital exchanges have very limited flexibility leading to a lack of adaptability required in certain market scenarios.

• They incorrectly price assets because they only take into account the supply/demand dynamics of the protocols they exist on and ignore the supply/demand dynamics of the entire global marketplace. This situation leads to arbitrage losses.

• DEXs run by these AMMs also are vulnerable to price manipulation and front running.

• Finally today’s DEXs fail to adequately manage the financial risk of their liquidity providers leading to potentially substantial losses.

The best of both worlds: OpusDigital

OpusDigital is solving these issues by creating a hybrid model which takes the best of TradFi and DeFi to create a marketplace which is regulatory compliant, price efficient, risk minimizing and scalable. This is done by utilizing the newest technologies in the way they were actually conceived.

Regulatory compliance: Blockchain done right.

Opus is able to be regulatory compliant by fostering the power of Blockchain in the way it was originally engineered: a technology to ensure data integrity, safety and standardization. Opus will use the blockchain in a non decentralized way to ensure compliance to the regulatory standards: operations on traditional blockchains (like Ethereum and Arbitrum) are done by Opus' backend in a controlled way, while internal trades are stored in a proprietary, internal Blockchain, which conforms to the regulatory standards of KYC, AML and so forth.

World-class risk management: Artificial Intelligence to learn

Using our artificially intelligent risk manager, we hedge the risks of our Liquidity Providers and shield them from unnecessary losses. Every time a trade is booked, a Swarm Learning model is trained continuously on the data of all the trades, and the result of this training is propagated back to the various portfolios which will then self-learn to hedge their risk optimally.

Best price, minimum cost: Artificial Intelligence and Blockchain interlaced

By using an artificially intelligent market maker which takes into account the supply/demand dynamics of the global marketplace, we are able to create efficient asset pricing, free of arbitrage and manipulation hazards.

The automation from the AI, and the standardization and cost-effectiveness from the Blockchain allows Opus to dramatically cut operative costs, which in turn allows to attract more clients by offering more competitive prices, aiming to be the future top player in derivatives markets.

New technologies to democratize Wall Street

Simply put we are simplifying, democratizing and making Wall Street safer, allowing anyone to benefit from the institutional quality pricing and risk management tools that Wall Street has been using for decades.