Features

OPB is an on-chain asset designed for stable value accrual. It achieves this by combining a number of unique features.

Stability

OPB is built on top of a synthetic dollar model. When users deposit collateral with OpenDelta, OpenDelta enters into a 1x short position in an inverse price perpetual swap (also known as a delta-neutral strategy). The resulting position is stable in dollar terms— this model is also known as a synthetic dollar.

This dollar position is then converted into OPB, which offers ongoing yield on top of the synthetic dollar position. These positions are highly liquid— as long as these positions exist, the peg of 1:1 is guaranteed as the redemption is a simple unwind of the position.

The hedged positions backing OPB are dollar-denominated, giving holders downside protection that protects their capital while earning yield.

Non-Fiat Collateral

Unlike USDT, USDC, and other fiat-backed assets, OPB does not rely on the fiat banking system for backing– all positions are collateralized using BTC. This creates a global customer base and allows OPB to offer stable value accrual and competitive yield to customers outside of the US fiat banking system. It also allows user to enter the system, exit the system, and transact within the system without touching legacy banking rails.

Sustainable Yield

The yield of OPB comes from the funding rate in the Bitcoin futures market. These are the largest and most liquid markets in all of crypto, and they provide a market-driven, sustainable source of yield for OBP holders.

Funding rates vary based on market conditions, but historical analysis shows them to be positive more than 70% of the time in Bitcoin. OPB holders earn yield whenever rates are positive. OpenDelta operates an insurance fund that pays out funding whenever it is negative, allowing OPB holders to preserve their principal.

Collateralized With Bitcoin

Bitcoin derivatives markets are the largest and most liquid markets in crypto, allowing OPB sufficient room to scale. These markets, via the funding rate, produce one of the most consistent and sustainable sources of yield available. OPB bridges this yield to on-chain users.

Trust-Minimized

OpenDelta operates as a trust-minimized bridge to bring CeFi liquidity and yield on-chain. To do this, we've built infrastructure that allows us to access centralized liquidity in a way that minimizes counterparty risk.

OpenDelta uses a system of off-exchange settlement for all of its positions. Collateral for the hedged positions is held in an MPC wallet with an institutional-grade custodian, meaning users’ funds are never held directly on the exchange. OpenDelta performs periodic settlement with the exchange, and collateral can be recovered even in the even of an exchange shutdown or back. This allows OpenDelta to access the largest and most liquid derivatives exchanges in a trust-minimized way that provides the strongest protection guarantees for users' funds.

Powered by Solana

OPB is minted as an SPL on the Solana blockchain and leverages Solana's native interest-bearing token extension. This means that OPB is natively composable with Solana's DeFi ecosystem, and users can hold and transfer OPB on the fastest and most efficient L1 smart contract platform.

The use of Solana's token extension means that users continuously accrue yield on OPB without having to stake or lock up their tokens.