Octopus Protocol: One of The Leading DeFi Derivative Protocols

By Edward Moon | Analysis From Moon | 7 Jun 2021

The blockchain and cryptocurrency space has witnessed unprecedented growth in 2021; there seems not to be any backing down. There have been increasing institutional investments, growing interest in decentralized finance (DeFi), and the decentralized derivatives market. The Octopus protocol is one of the leading DeFi derivative protocols in the derivative market. 

There has been a massive amount of liquidity entering the DeFi market in the last year. To put things in perspective, the market witnessed an overall increase in its market capitalization from $3 billion in April 2020 to $103 billion in April 2021. Also, the total value locked (TVL) has risen from $675 million to $48 billion within the same period. The total value locked for DeFi derivatives also experienced enormous growth, rising from $132 million to $2.6 billion between 2020 and 2021. 

The above statements prove that the DeFi derivative market is making giant leaps in terms of investments and interest. Octopus protocol has leveraged the rising strides of the derivative market to capture value.

What is Octopus Protocol? 

Octopus is an open-source derivative protocol that helps users create, exchange, settle, and also manage synthetic assets or tokenized derivatives. The protocol is built on Binance smart chain (BSC), and it facilitates affordable solutions for minting synthetic assets. Octopus protocol achieves this by reducing the collateral amount, thus lowering cost. 

It seeks to take advantage of the enormous potential of the huge decentralized derivatives market. By integrating the best principles of the Binance smart chain network, Octopus creates an affordable market solution for the decentralized derivatives market. This has made Octopus one of the leading derivative protocols in the industry. Octopus encompasses a multitude of products that help users trade and manage decentralized derivative assets. 

The Octopus Protocol OPS Token

The OPS token is a BEP-20 standard and is the native utility token of the platform. OPS token serves as fuel for the Octopus ecosystem. It acts as a reward for the platform users and also plays a vital role in captivating the value of multiple products of Octopus. 

These products include decentralized asset management, social trading, options trading, and decentralized derivative exchanges. The OPS token will also confer voting rights to platform users to decide on the protocol's governance. Currently, the total supply of the OPS token is fixed at 150,000,000, with an initial circulating supply of 8,700,000. 

Essential Functions Of The Octopus Platform


  • It gives users unparalleled access and exposure to real-world assets.


The Octopus protocol facilitates users to create tokenized derivatives or synthetic assets. These assets give these users unparalleled access to real-world assets. A user on the Octopus platform can mint tokenized derivatives with the capacity to impart exposure to any real-world assets like stocks, bonds, gold, etc. 


  • It provides an ecosystem where users can engage with synthetic assets.


There are several products under the Octopus protocol, and these products help to facilitate engagements with tokenized derivatives. With its broader ecosystem, users can capture the broader value through the creation of synthetic assets. Its ecosystem further enables users to trade, manage, and settle decentralized derivatives on a trustless architecture.  


  • Provide quality decentralized derivative experience


The unlimited possibilities of tokenized assets have made it possible for more platforms to start offering synthetic assets. Most of the notable platforms in the current DeFi derivatives market, like Mirror Protocol, Synthetix, UMA, etc., have different ways of engaging with tokenized derivatives. In the case of the Octopus platform, it leverages the power of the Binance smart chain to enable access to real-world synthetic assets.

Closing Thoughts

Many analysts are of the opinion that Octopus Protocol can play a major role in the yet untapped derivatives market. This year 2021 will play an integral role in the entire DeFi industry. Therefore, only time will tell how each of these market players will fair in the long run. 

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Edward Moon
Edward Moon

Crypto trader and analyst.

Analysis From Moon
Analysis From Moon

Analysis From Moon

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