#### What is Oxygen Protocol? Oxygen [Protocol](https://www.coinbase.com/learn/crypto-basics/what-is-a-protocol) (OXY) is a [decentralized finance](https://www.coinbase.com/learn/crypto-basics/what-is-defi) (DeFi) service that aims to democratize and optimize the financial ecosystem. Built on the [Solana](https://www.coinbase.com/learn/crypto-basics/what-is-solana) [blockchain](https://www.coinbase.com/learn/crypto-basics/what-is-a-blockchain) and powered by Serum's on-chain infrastructure, Oxygen Protocol is designed to serve a vast user base with its prime brokerage services. The protocol is centered around Pools, which are collective baskets of assets. Users can earn [yield](https://blog.coinbase.com/around-the-block-7-understanding-yield-farming-and-the-latest-developments-in-defi-ef9f1ac910fb), borrow against their portfolios, and leverage their assets, laying the groundwork for a dynamic and decentralized financial ecosystem. Oxygen Protocol is a non-custodial, permissionless, and scalable protocol that seeks to provide a more efficient way to manage capital. #### How does Oxygen Protocol work? Oxygen Protocol operates on a pools-based infrastructure where users can deposit their assets and specify which ones they want to lend. The protocol matches borrowers and lenders using the Serum [DEX](https://www.coinbase.com/learn/crypto-basics/what-is-a-dex) on-chain [order book](https://www.coinbase.com/learn/advanced-trading/what-is-an-order-book), ensuring fair pricing for borrowing and lending. Oxygen Protocol allows for multiple uses of the same collateral, enabling users to generate yield on their portfolio while borrowing other assets simultaneously. It also supports cross-collateralization, allowing users to use their entire portfolio as collateral when borrowing, potentially reducing liquidation risk. Furthermore, Oxygen Protocol facilitates streamlined in-pool trading, allowing users to interact with the Serum ecosystem and DEX directly from their pools. #### What are the potential use cases for Oxygen Protocol? Oxygen Protocol aims to provide a wide range of use cases for its users. The protocol's first phase is a borrow-lending protocol, where users can earn yield on their lent assets, borrow assets from a pool, trade directly out of the pool, and access more complex products using their pool's assets as collateral. Oxygen Protocol also aims to support arbitrary products, including [tokens](https://www.coinbase.com/learn/crypto-basics/what-is-a-token), synthetic products, and nonlinear assets, all cross-margined in the same account. The protocol's scalability, enabled by the Solana blockchain, allows it to serve as a completely on-chain [peer-to-peer](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/peer-to-peer) borrow-lending and prime brokerage protocol. #### What is the history of Oxygen Protocol? Oxygen Protocol was launched in late 2020 with the release of its mainnet alpha. The project is headquartered in Switzerland and is driven by a core team of individuals passionate about building the financial infrastructure of the future. The team has extensive fintech experience, with developers located around the world. Oxygen Protocol's strategic investors and DeFi ecosystem partners include Alameda Research, Serum, Genesis Capital, CMS, MultiCoin, and other leading high-frequency trading firms. The protocol's vision is to transform the current model of finance into one that is more accessible and powerful, with plans to create [volatility](https://www.coinbase.com/learn/crypto-basics/what-is-volatility) trading agreements and structured product functions in the future.