The native token of the Ethereum Ooki Protocol-based decentralized margin lending and trading platform, OOKI, has been on a downward trend since the start of the year. The token hit an all-time low in late January 2022, but has since rebounded over 40%, as of April 13.
The launch of the Ooki protocol on the Binance smart chain and its upgrade to the Oki protocol v2 in March 2022 played a role in the recovery. With Oki v2, Ooki Protocol introduced new trading pairs, flash loans, dynamic interest rates and decentralized exchange (DEX) selection features. But the platform remains a small player compared to leaders in decentralized finance (DeFi) on Ethereum such as Aave, Circle and Compound.
In this article, we discuss the Ooki protocol, its OOKI token, and the latest Oki v2 update. We also dig deep into the token’s price development and read analyst commentary to write a plausible OOKI price prediction for 2022 and beyond.
What is the Ooki Protocol?
Ooki Protocol is a blockchain-powered margin lending and trading platform that allows users to build applications that allow lenders, borrowers, and merchants to interact with the DeFi protocol on Ethereum. Users do not need to submit a Know Your Customer (KYC) verification to use the platform.
Margin trading is one of Ooki Protocol’s main offerings. Users looking to leverage their trade can enter positions with up to 15% leverage by providing collateral. Ooki also facilitates short selling when a trader sells assets they don’t own. The trader borrows the asset to sell it in the hope that it will lose value and later buys it at a lower price to return the borrowed assets. The trader’s profit will be the difference between the short entry price and the short cover price.
On Ooki, users can also borrow funds by posting collateral. Users risk liquidating their collateral if margin maintenance requirements are not met. As of April 13, Ooki’s website displayed 12 cryptocurrencies available to borrow at varying interest rates and liquidity. Stablecoins Dai (DAI), USD Coin (USDC) and Tether (USDT) demanded the highest interest rate at 19%, while Ether (ETH) and Wrapped Bitcoin (WBTC) demanded the highest interest rate the lowest at 6% and 3%, respectively. Other cryptos available for borrowing were Aave (AAVE), Compound (COMP), Chainlink (LINK), Loopring (LRC), Maker (MKR), Uniswap (UNI) and Yearn.finance (YFI) available at a rate of 10% interest.
Lenders can use the Ooki protocol to lend their cryptocurrencies and earn interest on them. All coins available for borrowing can also be loaned out, with OOKI the stablecoins earning the highest interest rate.
In March, Ooki Protocol announced that its margin trading, borrowing, and lending products were extended to Binance Smart Chain (BSC). The platform said traders can use the Ooki protocol on BSC’s PancakeSwap decentralized exchange to take advantage of its margin trading features.
As of April 13, 2022, the total value locked (TVL) on the Ooki protocol was $61.4 million, according to DefiLlama, including nearly $61 million on Ethereum, about $425,000 on layer two Polygon and 19, $85,000 on BSC. Ooki Protocol’s peak TVL was around $1 billion on April 18, 2021.
Ooki protocol analysis: what is the OOKI token?
OOKI is the native token of the Ooki protocol. OOKI is a governance token. Holders can vote on governance processes such as funding proposals, fee proposals, marketing initiatives, and the development roadmap, among others. OOKI holders can stake their tokens to earn trading, lending, and borrowing fees generated by the protocol.
There is another token on the Ooki protocol called vBZRV, an acquisition token that slowly releases the BZRV token that can be claimed for OOKI. The BZRV to OOKI conversion rate is 1 BZRX = 10 OOKI. According to the Ooki protocol, the user can only convert BZRX to OOKI on the Ethereum network.
OOKI’s maximum supply is capped at 10.5 billion tokens. At the time of writing on April 13, the circulating supply of OOKI coins stood at over 3.34 billion, according to data from CoinMarketCap.
Ooki Protocol News: Binance Smart Chain Extension Oki v2
On March 3, Ooki Protocol released a set of updates called Oki v2, which introduced:
Dynamic interest rate – According to the Ooki protocol, its new dynamic interest rate system allows liquidity pools to grow and offer optimal rates to lenders and borrowers using an interest rate curve dynamically changing. The new mechanism will eliminate rollovers of open positions, target an 80% liquidity pool utilization rate and allow for open-ended lending.
DEX Selectors – Users will soon be able to select which DEX to execute their trade in to get the best trading price. SushiSwap (SUSHI), Uniswap v2 and v3 (UNI), Pancakeswap (CAKE) and Quickswap (QUICK) will support this feature. The DEX selector will initially roll out to the Ethereum-based Arbitrum and Polygon networks.
Flash Loans – These will allow users to borrow instantly without any collateral requirement provided the liquidity is returned to the pool in a transaction block. Ooki will charge a fee for cash loans, which will be distributed to OOKI speakers.
In other news, the Ooki protocol expanded to Ethereum rival BSC in March 2022 and enabled its margin trading offering on BSC’s PancakeSwap, a decentralized automated market maker (AMM) exchange. Ooki said about the extension:
“Ooki will remain primarily an Ethereum-focused protocol. However, it extends its product offering to products and services on Binance Smart Chain. Binance Smart Chain users will now have access to Ooki products, while benefiting from BSC’s low fees and fast transactions.
Earlier in February 2022, Ooki Protocol presented its offers on Ethereum-based layer 2 scaling solution Arbitrum, citing high gas fees on Ethereum. Since April 13, the Ooki protocol is currently operational on Ethereum, Polygon, Arbitrum and the Binance Smart Chain.
OOKI Price Prediction: Price Action
As of April 13, Ooki Protocol was the 577th largest cryptocurrency network with a market cap of over $45.4 million. Data from CoinMarketCap showed that since late December 2021, its native token, OOKI, has fallen over 50% from $0.2853 on December 12, 2021 to its current price (April 13) of around 0.01348. $.
Since hitting an all-time high of $0.06397 on December 24, 2021, OOKI is around 78.8% below its all-time high, at the time of writing (April 13). The all-time low for the token stands at $0.009343, reached on January 24, 2022.
More recently, OOKI prices have risen alongside the broader cryptocurrency market, with value increasing by more than 11% in the past 30 days. However, the recent surge has not been enough to help OOKI post positive returns in 2022. The token is down more than 60% year-to-date, as of April 13.
Data from CoinCodex showed OOKI’s 50-day and 200-day exponential moving average (EMA) at $0.014617 and $0.015855, respectively, both indicating “sell.” OOKI’s 14-day Relative Strength Index (RSI) was at 48.37, indicating that OOKI was neither in the oversold nor overbought zone.
OOKI forecast: outlook for 2022, 2025 and 2030
According to a short-term OOKI prediction from CoinCodex, as of April 13, the token’s price could drop 4.3% to $0.012259 by April 20, 2022. CoinCodex added that technical indicators showed sentiment for OOKI was “bearish”, while the fear and greed index indicated “extreme fear” among investors.
“Based on our Ooki forecast, now is a bad time to buy Ooki,” CoinCodex said.
A crypto price prediction from Wallet Investor’s Ooki Protocol noted:
“Our AI cryptocurrency analyst implies that there will be a negative trend in the future and OOKI is not a good investment to make money.”
Wallet Investor expected OOKI value to drop to a minimum price of $0.000967 by the end of 2022, slide to $0.00165 by the end of 2023 and drop further to $0.000993 by the end of 2025. Its five-year OOKI coin price prediction suggested the cryptocurrency could trade at an average price of $0.00245 by April 2027.
According to Price Prediction’s OOKI/USD forecast, the Ooki protocol cryptocurrency token could reach an average price of $0.017 in 2022, rising to $0.051 by 2025. Price Prediction’s OOKI target price for 2030 was $0.33, as of April 13.
According to Digital Coin’s Ooki Protocol Coin Price Prediction, he expected that the price of the OOKI token could trade at an average of $0.0175 in 2022. His OOKI price prediction suggested that the token could reach a maximum price of $0.0284 by 2025 and $0.0643 by 2030.