First, I’d like to start off by saying I’ve been part of this community (bZx) since 2018ish so I’ve been with you all in the ups and the downs and as we keep on truckin’.
What is API3
I’m also a member of API3, where we allow smart contracts to directly connect to API providers directly without the need of any third-party node operator. The benefit is that API3’s API connection (the “Airnode”) creates transparency, real-world reliability, insurance, security, and most importantly for OOKI, near-instant data delivery from the API to the Smart Contract.
Beacons - "Data Feeds"
API3 products will be released very soon, including live data feeds (called “Beacons”). API3 will essentially allow data providers to spin up Price data feeds to smart contracts. All significant coins/tokens can have a data feed ready for production use, and new price feeds can be spun up within hours.
Therefore, no more waiting for OOKI for price feeds or when a new hot token launches.
Currently, we have a three-month free trial on any asset on Polygon and BSC. (ETH-Mainnett is not free since its much more expensive due to gas fees.) After the trial period, any price feed on Polygon or BSC for about $250/month per feed. This purchase buys insurance coverage from the API3 DAO so that the protocol has insurance in the event a price feed goes down. So the protocol is insured against oracle failures.
Borrowing and Lending
OOKI can essentially enable a plethora of tokens to be allowed to be deposited and borrowed. OOKI would be the first significant protocol to list a wide variety of tokens and any token for borrowing and loaning because it would have the price feeds available. I imagine the process would be relatively simple: copy-pasting a borrowing and lending contract with a new price feed.
I strongly suspect this would be a major competitive advantage for OOKI since people will likely lend their assets for stables during a bear market and likely inflation/recession market ahead of us.
OOKI having a diverse pool of native tokens also has other benefits:
If OOKI enables a pool of new tokens to be deposited, such tokens could be used to allow the shorting of such said asset pairs. As Badri discussed in a chat and to paraphrase:
"Longing a coin: OOKI protocol has the stables and ETH to long any coin.
Shorting a coin: OOKI needs the native token deposited in a pool to be shorted."
end quote- Something to that Effect
Therefore, if my personal assumption is correct (the margin trading contracts can access deposited tokens in a lending pool), then people can short and long new tokens and therefore more TV in OOKI. If not, then OOKI can still enable the longing of any coin with a price feed.
The first thing the community should consider is
(1) Which token, and
(2) How much liquidity should the token be considered “reliable”.
In essence, listing a token with ample liquidity would be less subject to big swings and price manipulations, and tokens recently listed could likely be subject to heavy price swings and possibly manipulations, positioning unfair trades.
This decision could be left to the DAO to vote and decide which tokens it deems safe or risky for users to trade.
What Else does API3 offer
While the main discussion here is on price data feeds, it is essential to note that API3 also can provide traditional market data, like stocks and forex, weather data, random number data (for lotteries), or possibly even Open Banking institutional data.
AP3 and OOKI can grow to new frontiers.
After a discussion period, we move to vote on whether
(1) OOKI wishes to enter in a three-month free service Agreement with API3 to obtain any price feeds on Polygon and BSC and,
(2) Which Price Feeds, OOKI wishes.
The ups and downs pale in comparison to the ultimate vision of OOKI, a truly decentralized and permissionless margin, borrowing, and lending platform that rivals the centralized finances of the world.
This API3 and OOKI partnership will enable new price feeds and smart contracts for lending/borrowing and margin trading. This partnership can be OOKIs stepping stone to accomplishing its ultimate mission, to eat the CEX lunch money.
Please feel free to post any questions. I’ve been an OOKI member since the bZx days and would like the best for our protocol (and token ).