"If only we could trade products linked to the price of oil and gold just like cryptocurrencies..." Ostium might be the project to realize such a future.

Ostium is an innovative Decentralized Finance (DeFi) protocol that enables trading of financial derivatives linked to the prices of Real World Assets (RWA) like oil, gold, foreign exchange (FX), and stock indices on the blockchain.

• What are RWAs?: Abbreviation for Real World Assets. These are real-world assets existing outside the blockchain, such as real estate, precious metals, and stocks.
• What is DeFi?: Abbreviation for Decentralized Finance. Financial services provided on the blockchain without intermediaries like banks.

Aiming to bridge DeFi and traditional finance (TradFi), Ostium is currently running a points program to incentivize user activity! This has garnered significant attention, with speculation that it might lead to a future token airdrop (free distribution).

For those who want to check out Ostium right away:

• Official Website: [https://www.ostium.io/]
• Points Program: https://ostium.app/points
• Official X (Twitter): @OstiumLabs
• Official Data: DuneAnalysis

This article provides an easy-to-understand explanation of Ostium, from its overall picture to the details of the注目 points program.

What is Ostium Protocol? - Trading RWAs on DeFi

Ostium is an open-source decentralized perpetuals exchange (Perpetuals DEX) built on the Arbitrum network, an Ethereum Layer 2 technology. What is a Perpetuals DEX?: A decentralized exchange that handles futures contracts without an expiration date (perpetual contracts). Allows for leverage trading.

Its key feature is its specialization in on-chain leveraged trading for real assets such as foreign exchange (FX), commodities (oil, gold, copper, etc.), and stock indices (S&P 500, Nikkei Stock Average, etc.). In addition to these, it also supports perpetual contract trading for major cryptocurrencies.

Developer: Ostium Labs - Experienced Team and Strong Investors

The Ostium protocol is developed by Ostium Labs. Co-founders Kaledora Kiernan-Linn and Marco Antonio Ribeiro met at Harvard University and have work experience at Bridgewater Associates, one of the world's leading hedge funds. The fact that financial professionals are venturing into the DeFi world is a major point of interest.

The company has raised $3.5 million in seed funding from prominent venture capitals such as General Catalyst, LocalGlobe, and Susquehanna International Group (SIG), as well as angel investors like Balaji Srinivasan, indicating high expectations for the project.

Ostium offers benefits to both:

• Traditional financial traders who want to leverage the efficiency and transparency of DeFi in familiar markets (FX, commodities, etc.).
• Crypto-native DeFi users who want to diversify into various asset classes beyond cryptocurrencies.

Key Attractions of Ostium:

• High leverage up to 200x: Allows for large trades with small capital (also involves risks)
• Self-custody: Users manage their own assets (not deposited with the exchange)
• Low trading fees: Enabled by the Arbitrum network
• Easy onboarding process: Just connect your wallet

Technical Foundation: Technology Supporting Ostium

• Blockchain: Fast and low-cost Arbitrum (L2)
• Oracles (Price Feeds): Uses Stork for RWAs and Chainlink Data Streams for cryptocurrencies
• Trading Model: Pool-based (utilizes liquidity pools)
• Liquidity Provision: Proprietary Shared Liquidity Layer (SLL) (explained later)
• Security: Smart contract audits and economic risk assessments have been conducted

This points program is one of the main reasons Ostium is gaining so much attention right now! Expectations for a future token airdrop (free distribution) are high.

Program Overview:

• Purpose: To incentivize and reward user activity (trading, LP providing, referrals, etc.). It is strongly anticipated to be the criteria for an airdrop.
• Official Stance: Ostium states that "points have no monetary value and do not guarantee future rewards," but this is a standard disclaimer. The fact that TVL (Total Value Locked) surged approximately 10x immediately after the program launch speaks volumes about market expectations.
• Start Date: Monday, March 31, 2025, 10:00 AM (US Eastern Time)
• Retroactive Distribution: Users active before the program started have already been distributed a total of 10 million points! Check eligibility here → https://ostium.app/points (Wallet connection required)

How to Earn Points (Accumulate Scores to Convert to Points)

1. Trading: Earn "Trading Score" based on trading volume and frequency (updated in real-time).
2. Liquidity Provision (LP): Earn "LP Score" based on the amount of USDC deposited into the MMV (updated in real-time). This may allow you to earn scores more efficiently than trading.
3. Referrals:
   Referrer: Earn 1 score for every 5 trading scores earned by the referred friend.
   Referred Person: Gets a permanent 5% boost on all trading scores! (Using a referral code is mandatory)
   
4. Community Contributions (Optional): Points may also be awarded for special contributions like bug finding.

How the Points System Works

1. Scores: There are two types of scores, Trading/Referral Score and LP Score, but they are ultimately summed up into points.
2. Point Conversion: Points are converted every Sunday at 00:00 UTC based on your contribution that week (your score ratio to the total score).
3. Score Reset: After point conversion, scores reset to zero, and a new week begins. Consistent weekly participation is important!
4. Distribution Amount: A minimum of 500,000 points will be distributed weekly (initial boost included).
5. Get Started Now!: Check your points, score, and rank here on the official app!

Points Program Summary Table

Action Plan for Participating in the Points Program

To earn Ostium points (= future airdrop?), follow these steps to get started:

1. Prepare Wallet: Get a wallet compatible with the Arbitrum network (e.g., MetaMask).
2. Prepare Funds: Deposit the necessary funds (e.g., USDC) for trading or LP provision into your wallet on the Arbitrum network.
3. Connect Site: Access the official app here! and connect your wallet.
4. Check Points Page: Go to https://ostium.app/points, enter a referral code if you have one, and check your dashboard. (Also check if you have retroactive points!)
5. Get Started:
   Trading: Trade perpetual contracts for FX, commodities, crypto, etc., on the platform. Even small amounts are okay!
   LP Provision: Deposit USDC into the MMV and receive OLP tokens. Do this after understanding the lock-up periods and risks.
   Referrals: Get your referral code and share it with friends or on social media.
   

Recommended Strategies for Earning Points:

1. Consistency is Key: Since scores reset weekly, it's important to engage in trading or LP activities regularly, not just once.
2. Fully Utilize the Referral System: Referring active traders can efficiently boost your score.
3. Consider LP Provision: Besides trading, LP provision is also an effective way to earn scores (understanding the risks is essential).
4. Always Check Official Information: Announcements regarding program changes, termination, or tokens are likely to be made on Official X (Twitter) or Discord. Be sure to follow them.
5. Beware of Scams: Be cautious of links from sources other than the official website or tempting offers via DMs.
6. Check official information here

1. Click Wallet Connect
2. Create an account with Metamask
3. Agree to terms and create account
4. Open a position on your preferred asset
5. Provide liquidity to earn points

At the heart of Ostium lies the "Shared Liquidity Layer (SLL)". This mechanism aims to improve the relationship between liquidity providers (LPs) and traders, fostering a stable trading environment.

SLL Components:

1. Liquidity Buffer: Acts as a cushion to absorb the net profit and loss (PnL) of all traders. It increases with traders' losses and decreases with their profits. It also helps stabilize fluctuations in LP rewards.
2. LP Market Making Vault (MMV): Serves as a backup when the Liquidity Buffer is insufficient.
   LPs deposit funds (like USDC) here, taking on risk in exchange for a portion of fees and liquidation rewards.
   

• Benefits of the Dual Structure:
  Mitigation of Conflict: Rather than a simple "trader loss = LP gain" scenario, LPs primarily benefit from increased trading volume.
  Stabilization of LP Rewards: The buffer absorbs shocks, making LP returns (APY) more stable.
  Simple LP Experience: LPs just need to deposit into the MMV.
  

Liquidity Provision (LP) and OLP Tokens

LPs (Liquidity Providers) are essential to Ostium.
LP Role, Risks & Rewards:
Role: Deposit USDC etc. into the MMV to provide necessary liquidity for trading.
Reward: Receive a portion of trading fees (reflected as an increase in OLP token value). Also eligible for the points program, allowing efficient point earning (detailed later). (Some sources mention an APY of around 28%, but this fluctuates).
Risk: Potential for LPs to incur losses if traders make significant profits (delta exposure risk). Deposited assets are subject to a lock-up period.

OLP (Ostium Liquidity Provider) Token:
A token representing the LP's "proof" of provided liquidity.

1. Minting/Burning: OLP is minted upon USDC deposit, burned upon withdrawal.
   
2. Rewards: Fees earned by the MMV are reflected in the OLP token's value increase.
   
3. Lock-up: Can be locked for up to 365 days. Longer lock-ups offer additional rewards (boost) (represented by an NFT during lock-up).
   
4. APR Calculation: The displayed APR is a reference value based on past performance.
   

Strengths/Potential:

• Pioneer in RWA x DeFi: The trend of handling real assets on-chain is likely to expand, and Ostium has the potential to become a foundational platform.
• Strong Team and Investors: Experienced founders and backing from prominent VCs enhance the project's credibility.
• Unique Technology (SLL): Has the potential to reduce LP risk and aim for more stable liquidity provision.

Risks/Concerns:

• Emergence of Competitors: Other projects may enter the RWA space.
• Smart Contract Risk: DeFi protocols always carry the risk of bugs or hacks.
• LP Risk: Liquidity providers may suffer losses due to market volatility or significant trader profits.
• Regulatory Risk: Due to the nature of handling RWAs, it may be subject to future regulatory impacts.

Ostium is a highly noteworthy project bringing the exciting field of Real World Asset (RWA) derivatives to DeFi. It boasts an experienced team, prominent investors, and unique technology (SLL).

The currently ongoing points program presents an attractive opportunity for many users due to expectations of a future token airdrop. Especially now, in the early stages of the program, might be a chance to gain an advantage as an early participant.

However, it is crucial to understand that LP provision involves risks, and points do not guarantee an airdrop. Participate with funds you can afford to lose.

Want to experience the future of finance with Ostium?

• Try trading: [https://ostium.app/trade?from=SPX&to=USD&ref=H69X0]
• Follow the latest updates: Official X (Twitter)