What Is OpenSky Finance? Should I Buy OpenSky Finance Token?
KEY TAKEAWAYS
- OpenSky Finance stands out as the inaugural hybrid NFT lending and borrowing protocol fueled by Aave, providing peer-to-pool instant loans and peer-to-peer customized loans.
- The token is available for trading on 1 market and 1 exchange, with Gate.io being the most active among them.
- Determining whether OpenSky Finance is a good investment involves careful consideration of various factors. Therefore, it's crucial to conduct up-to-date research and analysis before making any investment decisions.
1. WHAT IS OPENSKY FINANCE?
OpenSky Finance stands out as the inaugural hybrid NFT lending and borrowing protocol fueled by Aave, providing peer-to-pool instant loans and peer-to-peer customized loans. It facilitates borrowers in effortlessly transitioning between these two loan types within a single transaction.
OpenSky has introduced a discreet time-based liquidation (DTBL) mechanism, significantly enhancing the borrower experience. Simultaneously, it reduces the risk of bad debt due to the discrete nature of loans distributed over time. In essence, only a portion of the loans may undergo liquidation at any given moment.
2. HOW DOES OPENSKY FINANCE WORK?
2.1. OpenSky Instant Loan
Lenders deposit their ETH or USDC into an OpenSky EARN vault, immediately earning AAVE deposit income and Instant loan interest. The deposits are withdrawable at any time, and no specialized NFT knowledge is necessary to generate safe and capital-efficient passive income.
Borrowers stake their whitelisted collection NFTs, such as BAYC, and can instantly borrow a percentage of the floor price. The loans have fixed interest rates and due dates, allowing early repayment without penalties. OpenSky pioneers peer-to-pool loans in the NFT lending space, eliminating liquidation risk based on the NFT floor price. Borrowers face no liquidation unless they fail to modify or repay their loan by the grace period's expiration, initially set at 48 hours subject to DAO vote, at the end of the predetermined loan term.
2.2. OpenSky Bespoke Loan
Borrowers can propose a loan for an NFT not on the Instant loan whitelist or for a high-value NFT (e.g., Alien Punk) within a whitelisted collection like CryptoPunks. Initially, specific NFT collections are whitelisted for Bespoke loans, with plans to expand through DAO voting.
Lenders choose their desired borrow amount, term, and APR from listed Bespoke loan offers, accepting them on a first-come, first-served basis using their Aave pool deposits. This process is highly capital-efficient, as pool deposits continue to earn until a Bespoke offer is accepted. Upon repayment of a Bespoke loan, funds return to the Aave pool, and lenders resume receiving Instant loan income without interruption.
Lenders deposit their ETH or USDC into an OpenSky EARN vault, immediately earning AAVE deposit income and Instant loan interest | Source: opensky finance
3. OPENSKY FINANCE TOKEN
3.1. OpenSky Finance Tokenomics
Here is information about OpenSky Finance Tokenomics:
- Token Name: OpenSky Finance
- Ticker: OSKY
- Blockchain: Ethereum
- Token Contracts: 0xB185004C836695B9102eEbf1779e5A46B89248Fe
- Token Standard: ERC-20
- Token Type: Governance Token
- Total Supply: 100,000,000 OSKY
- Circulating Supply: Updating.
3.2. OpenSky Finance Token Allocation
- Community: 51%
- Team & Advisors: 13.8%
- Pre-seed Round: 13.783%
- DAO Treasury: 9%
- Other: 12.42%
Opensky Finance Allocation | Source: coinrank
3.3. OpenSky Finance Token Use Cases
- Lender Use Cases
One of OpenSky Finance token use cases is Lender Use Case. Guarantors enjoy exclusive privileges to underwrite all Instant loans and, at the conclusion of a 30-day loan term, can acquire Blue Chip NFTs at a substantial 60% discount from the initial floor price.
For instance, if an Instant loan was initiated on November 1st with a floor price of 100 ETH, and the borrower defaults on December 1st, the guarantor can secure ownership of the NFT at a net cost of only 40 ETH.
Lenders leverage pool deposits (oTokens) to craft or accept Bespoke loan offers, increasing earnings. In the event of non-repayment by the borrower, lenders can acquire the pledged NFT at an enticing discount.
- Borrower Use Cases
NFT holders can collateralize their Instant loan collection whitelisted NFTs (refer to the complete list) to secure a loan equivalent to 40% of the floor price. If a borrower desires a larger loan or possesses an NFT within the Bespoke collection whitelist (refer to the complete list), they can initiate or accept Bespoke peer-to-peer loan offers.
Borrowers enjoy the convenience of seamlessly transitioning from an Instant loan to a Bespoke loan or from one Bespoke offer to a more appealing offer using the reFinance function, enabled by flash loans. This function proves especially beneficial for lenders facing liquidity issues, offering them additional time to resolve their financial constraints.
Two OpenSky Finance token use cases is Lender and Borrower Use Case | Source: openskyfinance
4. OPENSKY FINANCE PRICE PREDICTION
According to Coinrank, OpenSky Finance token price is presently valued at $0.0515, experiencing a decrease of -3.51% within the last 24 hours. The All-Time High (ATH) for OpenSky Finance, recorded on January 23, 2024, stands at $0.126, reflecting a current decline of -59.1%. The token is available for trading on 1 market and 1 exchange, with Gate.io being the most active among them.
5. IS OPENSKY FINANCE A GOOD INVESTMENT?
Should I buy Opensky Finance token? Determining whether OpenSky Finance is a good investment involves careful consideration of various factors. Therefore, it's crucial to conduct up-to-date research and analysis before making any investment decisions.
6. FAQs
6.1. Where Can One Acquire OpenSky Finance?
OSKY tokens are available for trading on various centralized cryptocurrency exchanges, with Gate.io being a prominent choice for purchasing and trading OpenSky Finance. The most actively traded pair on Gate.io is OSKY/USDT, recording a trading volume of $15,956.26 in the past 24 hours.
6.2. What Is The Daily Trading Volume Of OpenSky Finance (Osky)?
The daily trading volume for OpenSky Finance (OSKY) amounts to $15,956.26 over the last 24 hours, marking a significant increase of 28.50% compared to the previous day and indicating a recent surge in market activity.
6.3. What Is The Fully Diluted Valuation Of OpenSky Finance (Osky)?
The fully diluted valuation (FDV) of OpenSky Finance (OSKY) is $5,149,557. This figure represents a statistical estimation of the maximum market capitalization, assuming the current circulation includes the maximum of 100 million OSKY tokens. The realization of FDV depends on the design and timeline of OSKY token emissions, which may span multiple years.
Determining whether OpenSky Finance is a good investment involves careful consideration of various factors | Source: X.com
Remember that investing in cryptocurrencies and DeFi projects involves risk, and prices can be highly volatile. Hope the information above is advisable to help you know more about what is OpenSky Finance. It's recommended that you should diversify your investments, only invest what you can afford to lose, and seek advice from financial professionals if needed. Always conduct thorough research and stay informed about the latest developments in the crypto space.
