OAX is a project that aims to develop a sustainable digital ecosystem for the future, which is built on openness, trustlessness, and strong governance. The project is created and managed by the OAX Foundation, a non-profit organization focused on developing the DeFi space. The OAX project comprises two layers, layer one and layer two.

OAX layer 1 is the base layer for the project, and it’s built on the Ethereum mainnet. It uses the OAX token, which is an ERC-20 token used for transacting and governance.

OAX layer 2 is a scalability solution built on layer 1 to support the development of decentralized exchanges (DEX). It allows for off-chain transactions, features a dispute resolution mechanism, and ensures the security of all its users. The OAX ecosystem comprises Notifs, DeFi Parachain, OAX Layer 2, and OAX Community. Through this article, prospective users can learn about the OAX project.

History of the OAX Platform

The OAX project was launched in June 2017 to address four main problems in the decentralized space: speed, scalability, interoperability, and trust. The project was led by co-founders Hugh Madden and Dave Chapman and was backed by various partners such as ANX International.

OAX conducted a successful token sale in 2017, raising over $18 million and listing the OAX token in numerous centralized exchanges like Binance, Gate, and Bitget.

It released its prototype that combines the 0x protocol and Ethereum smart contracts to create a peer-to-peer digital trading platform, which led to the launch of its layer two protocol (L2X).

By 2023, the OAX project had given funding to a team of IJN technologies developers, collaborated with Polkadot to create features for deploying DeFi parachains, signed a memorandum of understanding with IJN technologies to promote innovation in the DeFi space, wrapped its OAX tokens to the BEP-20 standard to be available on Binance Smart chain, and launched its Notifs app.

The OAX team also participated in various events and forums, such as the Hong Kong Blockchain Week, the DeFi Summit, and the Polkadot Decoded conference.

The OAX Team

The OAX project was established in 2017 to provide support with digital asset space. The project has a team of four founders, consisting of Hugh Madden as a co-founder and Director. He is also the CEO of Enuma Technologies. The other founders include Dave Chapman (the COO), David Tee, and Ken Lo.

The other member of the OAX management team is Amanda Liu, the General Manager who oversees the foundation’s daily operations. Kevin Wong, the Head of Marketing and Communications, and Winnie Mak, the Operations Manager, handle the administrative and financial aspects of the foundation.

According to data from Crunchbase, the OAX project underwent one funding round in May 2017 that raised $18.8 million from an initial coin offering.

How Does OAX Work? 0x Protocol and Dispute Resolution Mechanism

0x Protocol

The 0x protocol is an open protocol that allows DEXs to enable peer-to-peer exchange of assets on the Ethereum blockchain.

The protocol combines off-chain ordering relay and on-chain value transfer to reduce the gas fees paid during DEX transactions. A user is usually expected to pay gas fees for deposit funds, executing trades, filling orders, and withdrawing assets, making each OAX DEX transaction costly.

By incorporating the 0x protocol, OAX users can carry out cost-efficient transactions by utilizing the off-chain ordering relay feature to broadcast transactions for other users, in conjunction with the on-chain settlement feature that runs the executed trade through the network, reducing the gas fees paid while conducting a secure transaction.

Dispute Resolution Mechanism

The OAX project adapted the dispute resolution mechanism where disputes may arise from interpreting and applying smart contracts, protocols, and regulations that govern the transactions and settlements of digital assets.

In the dispute resolution mechanism, a participant involved in a dispute with another participant can initiate a dispute process by submitting a request to the competent authority (CA), a trusted entity appointed by the OAX Foundation for their jurisdiction.

Once the request is submitted, a panel of impartial professional arbitrators will be assigned to the case. The arbitrators will review the evidence and make a decision about the dispute.

If they reach an agreement, they will notify the participants of the outcome and implement it accordingly. The participants can accept or reject the outcome. If they accept it, they will waive their right to any other remedy under domestic or international law. If they reject it, they can pursue other remedies available to them.

The aim is to enhance transparency, fairness, trust, and cooperation among participants of the OAX ecosystem.

Features of the OAX Ecosystem: Notifs, DeFi Parachain, OAX Layer 2 (L2X) and OAX Community

Notifs

Image Source: oax.org

The Notifs App is a DeFi portfolio tracker launched by the OAX foundation in 2023. It helps users to connect their wallets to the app and track their DeFi portfolio across multiple chains.

The mindset behind Notifs is to create a platform for personalized information about the numerous assets of users stored in different self-custody wallets or DeFi projects. As a personal crypto notification application, it helps users track their digital assets while on the move.

The application has three main features: portfolio creation, customizability, and web 2.5.

The portfolio creation feature allows users to add unlimited transactions and assets, get a breakdown of their best performers, and see any aggregated view of their digital assets.

The customization features allow users to create custom notifications while tracking their assets. The notifications could include price changes, percentage changes, or hourly changes. This would enable the user to make more informed decisions when transacting.

The Web 2.5 feature allows users to log onto their accounts using social media accounts, email, or none of the above. This gives the user the power to decide how their data would be stored in the OAX ecosystem.

DeFi Parachain

Image Source: oax.org

The DeFi parachain is built on the Polkadot Blockchain due to its goals of tackling interoperability in the Crypto space with a scalable network and shared security.

The Polkadot design structure allows the development of multi-chain projects, contrasting with other blockchains. The OAX Foundation aims to expand its ecosystem by building its blockchain as part of the Polkadot network.

The OAX development team is focused on four key areas: ERC-20 functionality, atomic swap, fee delegation, and MultiTransfer.

The ERC-20 functionality supports using DeFi features for lending or swapping Ethereum-based tokens in the OAX ecosystem.

The atomic swap feature is designed differently from traditional blockchains that require two transfers to swap tokens between wallets. Unlike the smart contracts of traditional blockchains, OAX’s atomic swap would conduct the swap in one transaction instead of two.

The fee delegation feature allows users to pay transaction fees with whatever currencies they have available instead of using the native token of the OAX ecosystem.

Finally, the MultiTransfer feature allows developers to batch multiple transactions into one, thereby avoiding repeated fields and minimizing duplicate fields, which results in a lower gas cost.

OAX Layer 2 (L2X)

Image Source: oax.org

This is a layer two solution in the OAX project focused on scalability and dispute resolution for dApps and DEXs. Layer 2 uses state channels to enable fast transactions while maintaining the security of the project.

Layer 2 uses a roll-up technique that bundles transactions, processing them off-chain.

The layer is built to host Dapps that can use Layer 2 to scale their operations, DEXs that can use the layer to process a large number of trades per second, and micropayments that are too small to process on the OAX network.

The OAX Layer 2 is still under development, but it can potentially revolutionize how the OAX blockchain is currently being used.

The OAX Community

The OAX community helps by providing feedback and suggestions for the ecosystem. By identifying the potential problems, they help improve the OAX protocol and ecosystem.

During the launch of Notifs, the community spearheaded the testing of the software before it was released to the public to ensure it was free of bugs or security vulnerabilities.

To push innovation in the DeFi space, the community helps spread the word on the OAX project through blog articles, social media posts, and others. At the same time, some others develop applications that would be of value, contributing to the OAX ecosystem.

What is the OAX Token?

The OAX token, the native token of the OAX ecosystem, is an ERC-20 utility token that can be used to pay for transaction fees, stake for rewards, and participate in the OAX governance process.

Holders of the OAX tokens are rewarded for providing liquidity to a DEX on OAX or for participating in governance. In 2021, the OAX token could be wrapped in the BEP-20 standard, allowing users to explore the potential of transacting on the Binance Smart Chain (BSC) network. The token is now listed on Gate.io and a few other exchanges. The token has a total market supply of 100 million tokens, and 77 million are in circulation.

Is the OAX Token a Good Investment?

As the native token of a leading DeFi organization, the OAX token is well-positioned with a clear utility. The token is used to power the OAX ecosystem and participate in governance.

Due to the limited supply and reputable investors’ backing, the token’s demand would increase alongside its massive community. The support for the token is also listed in major crypto exchanges, showing their support for the currency. All these make the OAX token a viable project to invest in the long term.

Risk Analysis

Advantages

The major advantage of the OAX project is its scalability and security. The network is designed to handle a large number of transactions while focusing on protecting users’ funds. The OAX network is designed to be decentralized, meaning it cannot be controlled by a single entity, making it more secure and resistant to censorship.

The network is also designed to be developer-friendly. The network provides easy-to-use developer tools, low fees, PoS consensus, and interoperability, making it easier to build new applications and scale into other blockchains.

Disadvantages

The OAX network is not yet widely adopted. This means fewer applications, services, and liquidity are available on the network. The inability to find the right application or utility or execute trades on assets can frustrate users, especially those looking to trade large volumes of assets.

Challenges

The project faces some challenges, the first being competition. Unlike other networks like Ethereum, Solana, and Avalanche, which are more established, the OAX network is still undergoing development. Thus, there are fewer opportunities to use the OAX token than others.

This also leads to the challenge of adoption. With fewer use cases, developers aren’t inclined to build on the network. The lack of mass adoption reduces the scalability and innovation of the OAX network compared to other layer-one ecosystems.

And all these combined introduce a new challenge, being reduced user experience. As the OAX project is undergoing development, and the developer’s experience is reduced, the user’s experience would not be as good as some other layer-one networks.

Competitive Product Analysis

The biggest competitor to the OAX project is Polkadot. Although other major layer 1 networks like Cosmos, Avalanche, Fantom, Near Protocol, and Ethereum are competitors, Polkadot is a direct competitor because it also works to create decentralized blockchain platforms using Parachains.

Polkadot is one of the most popular layer-one networks, known for its strong focus on interoperability, and it allows developers to create other projects using its parachains features. A strong team and community support it, but its reduced focus on security led to the Polkadot DeFi Acala hack in 2022.

OAX, on the other hand, has a stronger focus on security and privacy. Thus, there have been no reported successful hacks on the OAX layer-one network.

How Can You Own OAX?

To own OAX tokens and become a part of the OAX ecosystem, users can follow a simple process.

Setting up a Wallet

One way to own OAX tokens is to purchase them through an exchange. For this, the user must create a Gate.io account, complete the KYC process, and add funds to the account to purchase the token.

Utilizing the OAX Tokens

Once users have acquired OAX tokens, they can explore the wide range of DeFi functionalities offered by the OAX ecosystem.

Take action on OAX

Users can sign up and purchase or trade OAX tokens here.