Source: OKX

Different people have different interpretations of financial satire.

There are currency wars without gun smoke, games of elite players, speculative markets where one can gain without effort, and tests of human nature where everyone is out for themselves. However, in the words of William Goetzmann, the thousand-year history of finance has driven and shaped the progress of human civilization. From the appearance of cuneiform writing in ancient Mesopotamia, the transformation of classical culture into empires in Greece and Rome, to the trade expansion of Europe towards the world, finance has played a crucial role.

As an important tool for cross-temporal resource allocation, asset appreciation, fundraising, and risk avoidance, finance has not been fully popularized, but the product matrix including stocks, bonds, funds, futures, options, and other products is already very rich. In 2008, the emergence of Bitcoin opened a new chapter in the history of financial development. As an innovative emerging financial industry, the encryption industry has innovated tools such as lending and liquidity mining under decentralized finance (DeFi), reformed many drawbacks of traditional finance, and through the migration of traditional financial tools, used encrypted assets as carriers to take over the development of inclusive finance.

The current encryption industry has accumulated a good variety of assets under standards such as ERC20, ERC-721, and ERC-1155. Whether through the migration of traditional financial tools or innovation, it has provided an opportunity for the 1.7 billion people worldwide who still do not have bank accounts to enjoy equal financial services. As a global leading cryptocurrency exchange and Web3 technology company, OKX integrates centralized exchanges and decentralized wallets into the same APP, building powerful financial tools for the future.

If OKX Web3 wallet is responsible for financial tool innovation, then OKX exchange is responsible for financial tool migration and popularization. Recently, OKX announced the official launch of Seagull, becoming the first exchange to launch this structured product in the industry, and also the exchange that provides the most comprehensive financial products in the industry. This article will explore the financial product landscape of OKX exchange based on the Seagull product.

One, OKX exclusively launches Seagull

Structured products are innovative financial instruments that earn profits from the futures, options and other derivatives markets. They are already very mature in traditional financial markets. However, due to the highly customized nature of structured products, it is necessary to balance different asset portfolios and risk controls. Currently, there are not many exchanges in the cryptocurrency industry that offer structured product trading. However, OKX has previously launched a series of structured products such as Shark Fin, Dual Currency Yield and Snowball, which have advantages such as zero handling fees, high annualized returns, and the freedom to choose the level of risk, and can obtain potential expected returns and receive wide acclaim.

Users can choose products based on current market conditions and risk preferences, capturing potential returns while avoiding risks.

For example, the current price of wheat is 100 yuan, but it is easily affected by various factors such as season and demand. Farmer Wang is worried about the future price drop of wheat, so he buys a put option, while bakery owner Zhang is worried about the price increase of wheat, so he buys a call option. If the price of wheat falls below 100 yuan on the expiration date, Farmer Wang can exercise the put option and sell wheat at the price of 100 yuan to avoid risks. Bakery owner Zhang can choose not to exercise the call option, although he loses the option premium, he can now buy wheat at a lower price, and vice versa.

Seagull is a structured product launched by OKX, the first in the industry. Similar to traditional financial seagull options, it is composed of a combination of three ordinary option strategies with the same expiration date. OKX Seagull products are divided into bullish and bearish seagulls, with bullish seagulls supporting user investment in USDT and bearish seagulls supporting user investment in BTC and ETH. Next, taking the example of the bullish Seagull-BTC product, we will briefly analyze the potential returns and risks of this product.

There are four main scenarios: when the BTC price is between A and B, you will receive the principal and low APY USDT rewards; when the BTC price is between B and C, you will receive the principal and low to high APY USDT rewards; when the BTC price is greater than or equal to C, you will receive the principal and high APY USDT rewards; when the BTC price is less than or equal to A, you will receive the corresponding BTC.

Overall, OKX Seagull products have low costs and risks, but also have limited maximum returns. They are mainly suitable for expected small increases or oscillations in the market. This helps investors hedge at low or even zero cost without having to understand complex derivatives. All they need to do is invest in USDT or BTC based on their own judgment of the market and risk preferences with just one click.

二、OKX Structured Product Comparison

As mentioned earlier, OKX has a variety of structured products, including Shark Fin, Dual Currency Win, Snowball, and the recently launched Seagull. All of OKX's structured products do not charge any handling fees and have decent potential returns and relatively good risk control systems. However, with the increasingly detailed and fragmented structured product matrix, many users still have a relatively fragmented understanding of the products. Therefore, we will compare OKX's structured products from multiple dimensions such as applicable market conditions and reference annualized returns, hoping to provide everyone with a basic reference. However, there are many variables, so actual situations should prevail.

As an exchange that provides the most comprehensive financial products in the industry, here is a brief overview of the OKX financial section for users to choose and participate according to their own needs. The OKX financial section currently offers three core sections: Earn, Lend, and Jumpstart. Among them, Earn includes three categories: Simple Earn, Structured Products, and On-chain Earn. Haiou is one of the structured products.

Additionally, the OKX lending platform aims to meet users' investment and consumption needs by allowing them to borrow and lend digital assets through collateralization. The Jumpstart platform, on the other hand, is a program that discovers high-quality new projects globally, and OKB holders can easily participate in it.

Three, Building Powerful Financial Tools for the Future

In the era of globalization, finance is a vast network, and every individual is an economic animal on this network, where a slight movement can cause a ripple effect. Exchange rates, interest rates, CPI, GDP, annualized return rate, P/E ratio, PMI... These complex and profound terms frequently mentioned by financial experts are essentially the result of data statistics, quantification, and abstract summarization behind people's daily lives, including food, clothing, shelter, transportation, and entertainment. The high inflation pressure has put the US and even the global financial system at systemic risk, and what we can do is to make good use of financial tools and strategies to seek alpha while ensuring risk prevention.

The encryption industry is an extension and innovation of the thousand-year history of financial development. As a leading encryption exchange and Web3 technology company in the industry, OKX is building powerful financial tools for the future, with opportunities at your fingertips.

Aside from structured financial products that have evolved from traditional finance, centralized exchanges and decentralized products such as Web3 wallets have also taken a leading position in the industry through continuous innovation. According to the latest ecosystem overview released by OKX Web3 wallet, the wallet section has access to over 70 public chains, the DeFi section supports over 120 protocols, and the NFT market aggregation platform covers over 30 platforms, supporting multiple ecosystems such as Game, Social, MEME, Tool, and more, with a total of over 300 supported platforms and protocols. In addition, it also has the most powerful DEX and cross-chain aggregator, as well as a flexible and comprehensive Discovery section, among others.

During the rapid development of finance in the Western civilization, it has shown great wealth creation power. However, currently, there are still 1.7 billion users worldwide who do not have bank accounts and cannot enjoy the opportunities brought by finance. The emergence of encrypted assets and OKX tools will bring them and global users a new and fair financial participation opportunity. Even though the economic cycle is constantly changing, as long as you find the right encrypted financial tools and do asset allocation well, you can calmly deal with everything and wait for the wind to come.

Just like OKX's slogan: Better future: game on.

This article is from a submission and does not represent the views of BlockBeats.

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia