Ondo Finance is a pioneering DeFi protocol that provides solutions for profit and risk management in liquidity pools through a Vault mechanism with two types of fixed and variable yield positions.
The Ondo Finance project helps cryptocurrency investors optimize profits on the Ethereum Blockchain platform, while minimizing risks by dividing yield forms suitable for different appetites, aiming to become a leading decentralized investment bank in DeFi.
MAIN CONTENT
Ondo Finance divides profits into Fixed Tranche and Variable Tranche, helping investors balance between profit and risk.
The USDY token is backed by short-term U.S. Treasury and offers attractive yield for holders.
The project raised over $20 million from large funds such as Pantera, Founders Fund and is expected to list on Coinbase.
What is Ondo Finance?
According to CEO Nathan Allman, Ondo Finance provides a DeFi platform for managing investment capital by separating profits and risks through Vaults, allowing investors to choose fixed or variable yield positions.
Ondo Finance operates on Ethereum with the goal of expanding products and moving towards a decentralized investment banking model. This product helps minimize Impermanent Loss risk and increases the predictability of returns for cryptocurrency investors.
What are the highlights of the Ondo Finance project?
Ondo Finance possesses two main tokens: USDY and OUSG, representing high-quality assets managed transparently, enhancing the project's safety and credibility in the cryptocurrency market.
What is the USDY Token?
USDY is a stablecoin token backed by short-term U.S. Treasury and demand deposits, providing stable yields for non-U.S. investors. USDY helps capture nearly all profits from the collateral, different from traditional stablecoins.
What is special about the OUSG Token?
OUSG is a token representing short-term U.S. Government Bonds, with participation from reputable parties like Ondo Capital Management, Coinbase, and Clear Street, ensuring transparency and efficiency in asset conversion on-chain.
How does Ondo Finance operate?
DeFi experts note that Ondo uses a Vault model that divides liquidity pools into Fixed Tranche and Variable Tranche, allowing investors to choose between fixed and performance-based yields.
The process consists of three main steps: contributing liquidity to tranches, pooling, and providing liquidity on AMMs like Uniswap, then distributing profits according to the chosen tranche.
Ondo Finance is a breakthrough in providing structured financial solutions in DeFi, helping investors manage risk more effectively while still leveraging liquidity benefits.
Nathan Allman, CEO Ondo Finance, 2023
What are the main products of Ondo Finance?
The project deploys two main products based on the Vault model:
Flipped Vault: for individual investors providing liquidity safely and efficiently.
Liquidity as a Service (LaaS): collaboration to provide liquidity for prominent DAOs like Near, UMA, Terra, bringing professional and stable liquidity.
In-depth comments on the operation model of Ondo Finance?
Analysis from financial experts shows that Ondo's model minimizes Impermanent Loss risk while generating attractive APY, for example, Fixed Tranche can reach 36.01%, creating stable liquidity sources without incurring high costs for liquidity mining.
What is the basic information about the ONDO token?
Token Name: Ondo Finance Token
Symbol: ONDO
Blockchain platform: Ethereum
Standard Token: ERC-20, governance type
Total supply: 10 billion ONDO
Circulating information: updated
What is the utility of the ONDO token?
The ONDO token is mainly used for DAO governance, enabling investors to participate in voting on important project decisions, ensuring democracy and transparency.
How is the allocation of ONDO tokens executed?
Coinlist Tranche 1: approximately 1%, locked for 1 year and gradually allocated over 18 months.
Coinlist Tranche 2: approximately 4%, locked for 1 year and gradually allocated over 6 months.
Seed Investors and Series A Investors: each group under 7%, locked for 1 year and gradually allocated over 24 months.
Detailed allocation information for other parties is expected to be updated in the future.
Who are the team, investors, and partners of Ondo Finance?
Project team
CEO Nathan Allman studied at Brown University and worked at Goldman Sachs. The Ondo team includes experts from various fields such as Blockchain, finance, marketing, and software development to build a quality DeFi platform.
Notable investors
Ondo successfully raised $4 million in the seed round from Pantera Capital, Genesis, CoinFund, along with a $20 million Series A round led by Pantera Capital and Founders Fund, with participation from Coinbase Ventures and Tiger Global.
Reputable partners
Collaboration with leading organizations like BlackRock managing ETF based on U.S. Government Bonds, BNY Mellon, JP Morgan, and Coinbase shows trust in asset management and project operation.
Collaboration with BlackRock and major financial institutions helps Ondo Finance create a reliable DeFi platform, integrating real asset factors into DeFi.
Allinstation, April 2024 report
What is the assessment of Ondo Finance's potential and current position?
According to DeFiLlama, Ondo Finance ranks among the top 3 Real-World Assets projects with a total value locked (TVL) of $179 million, demonstrating strong appeal in the DeFi community.
The project is expected to become a leader in the RWA sector, utilizing idle cash flows to increase low-risk assets for users, while completing the roadmap for Token listing on Coinbase to expand its network and liquidity.
Conclusion
Ondo Finance is a DeFi project with a robust financial structure, dividing profits and risks suitable for many types of investors. This is a promising platform supported by many top funds and partners. However, you need to research thoroughly and consider before investing.
The information in the article is not investment advice.
Frequently asked questions
On which Blockchain platform does Ondo Finance operate?
Ondo Finance develops on Ethereum, applying ERC-20 token standards for its ONDO token and DeFi products.
What is USDY and how is it different from traditional stablecoins?
USDY is a token backed by short-term U.S. Treasury and bank deposits, providing yield to holders unlike traditional stablecoins which only maintain price stability.
How much capital has the Ondo Finance project raised?
Ondo successfully raised over $20 million from large funds such as Pantera, Founders Fund and previously raised $4 million in the seed round.
What is the ONDO token used for?
The ONDO token is used for project governance (DAO), allowing holders to vote on important decisions.
Does the Fixed Tranche model help reduce risks for investors?
Fixed Tranche offers a fixed APY and protects investors from Impermanent Loss, contributing to reducing risks when providing liquidity.
Source: https://tintucbitcoin.com/ondo-finance-ondo-la-gi/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
