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Our Next DeFi Bet - Oxygen (OXY) Wallet

Every now and then, a special opportunity surfaces in the cryptocurrency market. People think it happens a lot more often than it actually does but that is because they also account for what are more likely to end up being scams or worthless in the long run.

Note: The opportunity we’re taking and talking about in detail in this full fundamental report would not have been possible if we were US residents (restrictions). But as we are not US residents we’re able to partake in it.

We invest in coins/tokens that can have sustainable growth; we stay away from what could temporarily pump on news/updates with no intrinsic value as these become irrelevant over time. Additionally, we prefer investing in those tokens that also happen to be part of DeFi (Decentralised Finance), for a very specific reason which we publicly explained at the start of 2020

Disclaimer: NOT FINANCIAL NOR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make and only you are accountable for the results.

Fresh Take on Prime Brokerage

Prime brokerage by definition is a bundle of services offered to clients by a single executing entity, that would otherwise need be done on multiple different venues – it is a services aggregator. Until now, due to the costs of execution this has only been available to institutional investors. Oxygen is changing it and is offering DeFi Prime Brokerage.

Oxygen Wallet App

The Oxygen wallet is based on two blockchains: Ethereum & Solana. The former has the largest DeFi ecosystem, the latter is a much cheaper and faster network.

On both Solana and Ethereum you can hold a variety of different assets including: ETH, SOL, USDC, SUSHI, FTT, WBTC… Similar to how tokens held on Ethereum are called ERC, tokens held on Solana adhere to the SPL configuration.

You can send SOL from Ethereum into Solana and vice-versa, as well as exchange them along the way (i.e. send SOL from Ethereum and get the equivalent in USDC on Solana). All exchanges are made through the decentralised exchange: Serum.

DeFi Services

Other than exchanging assets, Oxygen offers a multitude of other DeFi services (which are not live yet):

  • Borrowing/Lending (i.e. earn yield or borrow funds for margin)

  • Leverage Trading

  • Derivatives

Important Note: You can try out the product by downloading the app and trying the exchanging function after creating a Solana wallet. You’ll see how quick and cheap it is, then think: “Would I be a user of Oxygen?” This is what’s superior in DeFi, you can try out the products.

OXY Token

The OXY token is the platform’s governance token that also benefits from the net revenue. Let’s break down the two parts:

  1. Governance: Each token will represent one vote when it comes to decide changes for the platform.

  2. Revenue: The net revenue generated by Oxygen will be used to buy OXY tokens and burn them, which reduces the supply and hence benefits token holders from the revenue. This is similar to the buy & burn approach used on the FTT exchange token. The revenue will come from three main sources: lending fees, trading fees and liquidation fees – the more the platform is used the more valuable OXY tokens are.

Additionally, holding OXY tokens will benefit token holders from fee discounts.


2% of the total OXY supply will be distributed via the Initial Exchange Offering (IEO) held on FTX on March 11th 2021 at 1:00 PM UTC (London Time). This means 200 Million tokens will be distributed during the IEO. There are rules and requirements to participate in it:

  • US residents are prohibited due to regulatory reasons

  • Have an FTX account

  • KYC Tier 2

  • 500 FTT staked or $50,000 in 30D trading volume

This last requirement seems tricky but it’s not. A $50,000 in 30 day trading volume can be achieved on an account by placing and closing trades that have a total volume of $50,000 – which is rather simple. A 1 BTC trade (could be on leverage) does that trick right now at the current price of BTC > $50,000. Also these should be fulfilled 24H before bidding starts.

The way the IEO is conducted is there’s a range within which investors can bid, that range starts at $0.10 per OXY to $0.2125 per OXY. Each ticket will equal 2,000 OXYs and the maximum bid per ticket is 250USD + 5 FTT = $425 -> 425/2,000 = $0.2125 per OXY.

This isn’t a very wide range and only 1,000 tickets will win. If everyone bids the maximum (likely) then the 1,000 tickets will be distributed randomly amongst the largest bidders. Personally, we’re going to be bidding the maximum per ticket.

Bids can only be placed between 1PM & 2PM (London Time) on the 11th of March, they can be placed through this page here; through which we have set up the required sub-account and prepared funds in it.

Update: OXY opened at $3 which means our approximation below was correct. Any IEO tickets filled turned into an instant 13X overnight! ($450 to $6,000) 🚀

Valuing OXY

Here’s what we believe the market will value OXY at. First and foremost, there are two types of market caps to look at: Fully Diluted (max supply * price) and Circulating (circ supply * price). While the former matters, the market mainly focuses on the latter.

OXY is likely to be amongst the Top 100 assets by Market Cap at launch, which means it is likely to be valued at about $500 Million in MCap (relatively). With 250 Million tokens in circulating supply in the first year, that means a price of $2 per OXY.

Oxygen’s ambitions are big. Additionally, we find that a product released pre-token always shows teams legitimacy and the fact that they are not simply in it for the quick-flip. In 2022, we believe OXY can have a market cap of approximately $5B, which would mean $25 per token.

Our Allocation

As you know we have 5% left in cash that were dedicated to a small cap. We decided to split that cash and invest in two cryptocurrencies, the first one will be OXY.

We are allocating 2% of our portfolio to OXY.

Disclaimer: NOT FINANCIAL NOR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make and only you are accountable for the results.

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