Onchain Trade Protocol (OT)

What is Onchain Trade Protocol

OT is a new DeFi protocol that allows single-token liquidity pools (instead of pool pairs). This is made possible by grouping deposited tokens into a virtual pair with the native OSD stablecoin. Single token liquidity pools are more capital-efficient, resulting in a more optimized experience for all participants including traders, liquidity providers and third-party projects.

OSD is short for One Stable Dollar.

OSD is the stable coin introduced by OT, OSD works like the glue that holds the protocol together. OSD is a unit of account token for all assets listed on OT. OT solves the capital inefficiencies of liquidity pool pairs(that traditional AMMs such as Uniswap, Sushiswap, etc have) by grouping deposited tokens into a virtual pair with the OSD. This means that liquidity providers only need to deposit one token to the pool instead of two. OSD is backed by all the assets in OT pools that have a positive OSD balance and OT treasury.

When a user creates a new pool, they need to set a starting price for the asset in $. This means that every asset in OT pools expresses their value in OSD. Therefore trading works by forming a similar pricing curve to Uniswap except while they use the ratio between two tokens, we have a starting price and a would be price.