About Oikos: Decentralized Synthetic Asset.
Oikos is a Tron port of Synthetix: a synthetic asset platform that provides on-chain exposure to fiat currencies,commodities, stocks, and indices. Synthetic assets (Synths) are backed by Oikos Network Tokens (OKS) locked into a smart contract as collateral. Synths track the prices of various assets, allowing crypto-native and unbanked users to trade P2C (peer-to-contract) on Oikos Exchange without liquidity limitations.
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750% collateralisation required
Oikos requires 750% collateralisation for Synth issuance. So if you want to mint a hundred synthetic US dollars (USD), you’d need the equivalent of US$750 of OKS tokens as collateral. This creates a generous buffer for Synths in circulation.
Debt-driven
When someone mints new Synths, their 750% OKS collateral is locked up, while the value of the issued Synths takes the form of outstanding debt. To unlock their collateral, a person needs to pay back their share of the global debt by burning Synths. The 750% collateral requirement helps ensure that Synths remain collateralized even through wild market price fluctuations.
Exchange fees and staking rewards
By locking up OKS, issuing Synths and taking on the debt of those Synths, one also becomes a staker and starts earning staking rewards. These take the form of a portion of the Oikos Exchange fees as well as a share of the inflationary supply. The exchange fees are currently set at 0.3% per trade. They are put into a pool, where they can be claimed by stakers proportionate to their outstanding debt. So the more Synths someone issues, the more staking fees they earn. However, they can only earn staking rewards if they maintain a ~750% collateralisation ratio. This incentivises people to actively maintain their personal 750% ratios.