Opium Protocol launches governance token OPIUM

The DeFi platform for cryptocurrency derivatives Opium Protocol will conduct an airdrop of governance tokens OPIUM as part of its own drOpium liquidity-mining model. The latter will give users the chance to receive thousands of times more tokens, ForkLog reported.

We’re thrilled to announce that $OPIUM, the Opium Protocol governance token, is live now on Ethereum mainet!
We also excited to introduce the revolutionary way of distribution, perhaps most fair yet!?https://t.co/iOVbCI6lpr

ETHAddress: 0x888888888889c00c67689029d7856aac1065ec11

— Opium (@Opium_Network) January 27, 2021

Tokens will be distributed to users who have at least one transaction on the platform before January 4, 2021, or provided liquidity to the pool against USDT Insurance. The payout amounts range from 8 to 100,000 OPIUM.

The project team noted that 40% of governance tokens distributed during the giveaways, for example — UNI or 1INCH, were sold immediately. In their view, this indicates that a significant portion of the coins ends up in the hands of speculators, rather than community members committed to the protocol’s success.

The founder of Opium Protocol Andrey Belyakov proposed a token distribution model after the drOPIUM airdrop based on game theory, which rewards commitment to the project.

The coins will be placed in a liquidity-mining vault. Users will be able to withdraw OPIUM at any time, but only a portion of the coins; the remainder will be distributed among the accounts remaining in the vault (the pool). For example, the first to withdraw will receive only 40% of the initial number of coins.

The mechanism is designed to reward users who hold tokens in the vault longer. Even those who receive the minimum 8 OPIUM will withdraw up to 200,000 coins if they exit last.

Potential distribution of tokens after the drOPIUM airdrop. Data: project blog on Medium.

“The philosophy of Opium is to hand governance to active users who bring value to the community and participate in the protocol in the long term,” emphasized Andrey Belyakov.

According to DeFi Pulse, the protocol ranks sixth among derivative platforms by total value locked. In the last two days the figure rose from $0.9 million to $5.2 million.

Data: DeFi Pulse.

Last week the protocol conducted a limited OPIUM premine worth $1 million.

In November 2020, the Opium team raised $3.25 million in a financing round with participation from Galaxy Digital, Alameda Research, Hashkey Group and CMS Holdings.

In December the platform launched the service for hedging risks with Opium Insurance for the DeFi sector.

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