Ostium & Chaos Labs: Advancing DEX Innovation
We’re thrilled to announce our partnership with Chaos Labs! We’ll be working together closely to improve our mechanism design and create a risk modeling and monitoring system for the Ostium Protocol. Our foremost priority will be to ensure the system’s robust and secure functioning to bridge the gap between on-chain trading and off-chain asset offerings.
Research, Robustness & Economic Security
A core component of our collaboration is the research phase, which is currently underway. This phase will focus on refining the Ostium Protocol’s mechanism design, particularly evaluating the fee structure and its influence on user behavior. Through agent-based simulations, Chaos Labs will provide insights into the system dynamics and potential areas of improvement. In addition, the Chaos team will help ensure the protocol design properly accounts for the unique dynamics and features of Real World Assets to maximize economic security.
Our Vision for Real-World Assets
Currently, “Real World Assets” are synonymous with tokenization in DeFi, focusing on offering yield-maximizing solutions to long-term holders rather than catering to the needs of traders. As capital flows onto blockchain rails, traders increasingly seek diversification and exposure to a growing universe of assets. Yet, from forex pairs to commodities, most diversifying assets in the traditional markets are inaccessible on-chain. Further, despite the volatile macro environment’s increasing influence on market dynamics — from geopolitical uncertainty to evolving interest rates and inflation — on-chain traders have little opportunity to express their macroeconomic views outside directional bets on large-cap crypto. On-chain exposure to a diverse set of Real World Assets will allow traders to build a more diversified portfolio and express granular views on the macro developments that shape markets.
Beyond that, many traditional markets Ostium will soon offer on-chain are plagued by centralization, inefficiency, and a lack of immutability and accessibility. The team believes tangible or “real-world” assets are overdue for a technological upgrade. Blockchains are uniquely poised to facilitate this transition by enhancing transparency, facilitating fractionalization, and democratizing access. Both teams strongly believe that long-term market activity for the vast majority of asset classes will transition on-chain — and are building towards that future.
