What is Ondo Finance? Ondo Finance is a DeFi protocol built to balance risk and return appetite for DeFi users. Ondo Finance is positioned to open the door for wider DeFi adoption by allowing high-risk investors and low-risk investors to profit together.
So what is Ondo Finance? Please refer to this article with us!
Overview of Ondo Finance
What is Ondo Finance?
Ondo Finance is a DeFi protocol that helps users earn profits and exchange risks. Built and developed on Ethereum, then expanded to Polygon and other networks. Ondo was born with the aim of accelerating the adoption of DeFi among traditional investors by enabling risk exchange.
Ondo Finance is considered a bank for users to deposit money to earn interest. It invests users’ money to make profits and then returns it to users. Ondo’s business model is that of an intermediary connecting the supply and demand of capital. In addition, Ondo Finance has the ambition to become a liquidity center in the DeFi market.
As a DeFi protocol, Ondo also cares about security. Thereby, the project was audited by Certik, Peckshield, ABDK and Quantatamp.
The Difference Of Ondo Finance
On Ondo Finance, users can provide one-sided liquidity through Vault. Unlike the usual Pool model of 2 Tokens, Ondo’s liquidity pool is divided into 2 separate pools with different interest rates and risks. 2 separate pools named Fixed Tranche Pool and Variable Tranche Pool:
- Fixed Tranche Pool: When depositing assets in the Pool, users will receive a fixed interest rate. And users also know future profits. Fixed interest rate is calculated based on the interest rate of the previous 7 days of assets in the Pool. This pool is very suitable for those who prefer low risk.
- Variable Tranche Pool: When depositing assets into the Pool, the interest rate users receive will fluctuate based on the performance of the liquidity Pool. And it is calculated by subtracting the Yield earned by the Liquidity Pool from the Fixed Tranche’s fixed interest rate. This pool is suitable for people who like high risk.
Ondo Finance’s Operating Mechanism
The project includes 2 products Liquidity as a Service (LaaS) and Structure Products.
Products arrived Liquidity as a Servicinge (LaaS)
An overview of LaaS
Ondo is the first platform to introduce the LaaS concept. LaaS service makes it possible for token issuance projects to increase the liquidity of their native tokens on decentralized exchanges by providing liquidity themselves. Besides, Token issuers earn transaction fees that help reduce the risk of temporary loss and capital costs.
Mechanism of action
A project can deposit its tokens into the Ondo liquidity pool with flexible deadlines. Ondo will then pair this deposit with an asset pool of equivalent value provided by one of the counterparties (Frax, Fei, Angle, Paladin, Near,…) to form a pair of bars. clause. The liquidity pair will be sent to the Dex designated to Farm. When due, Ondo will withdraw liquidity along with Farm profits to the platform. Finally, return the assets plus the initially stipulated fixed interest rate to the counterparty, and the remainder will be paid to the project side.
Products arrived Structure Products
An overview of Structure Products
SThis product allows cryptocurrency investors to trade the risk and reward of the asset. By depositing money into Ondo with a fixed rate, low risk position or a variable rate, high risk position. This is a product for both traditional investors and seasoned DeFi investors.
Mechanism of action
KOnce the Vault is open, users can deposit assets into Fixed Tranche Pool or Variable Tranche Pool to earn profits with specific deadlines. After a certain period of time, the Vault will close and receive liquidity of equal value in 2 Pools to pair into a liquidity pair (ie, the Pool after pairing has 50% of assets in Fixed Tranche Pool and 50% of assets in Fixed Tranche Pool. Variable Tranche Pool calculated by value). The liquidity pair will be transferred to Uniswap or Shushiswap to Farm. At maturity, Ondo Finance withdraws liquidity from the Dex with the Farmed Yield included. Next, return the asset with a fixed interest rate to the depositor in the Fixed Tranche Pool. The remainder will be paid to senders in the Variable Tranche Pool.
Ondo DAO: Ondo Finance’s DAO is managed by ONDO Token holders. The DAO is responsible for electing people with roles to operate Ondo. The specific roles are as follows:
- Panic: The holder of this role can immediately suspend the protocol if the protocol has a vulnerability that is being exploited.
- Guardian: This role is responsible for resuming the protocol after it has been paused. And can be managed by a Multi-sig.
- Creator: Vault product creators.
- Strategist: As a strategist with access to several functions on the AllPairVault contract. The purpose is to push the product through different life cycle states. Each Strategist is defined per specific Vault. They do not have access to all products.
- Deployer: This role is a special admin role to add or remove contracts from the roles below.
- Strategy: Role dedicated to smart contracts implementing strategies. For example, at launch, Ondo will offer strategic contracts for Uniswap and Sushiswap. These strategies will be whitelisted by the Deployer role. If a strategy has not been whitelisted, it cannot be added to the protocol.
- Vault: Role given to the main smart contract that manages fixed-term products. Only Deployer can whitelist these contracts.
Real World Asset products
In 2023, Ondo Finance officially stopped developing the Liquidity As A Service and Structure Product product lines to shift to the Real World Asset segment to help users around the world access products such as US government bonds. or corporate bonds.
Everyone read details about Ondo V2 here.
Development Roadmap
Second half 2022 onwards:
- Synthesize other Yield sources besides the Liquidity Pool on AMM platforms
- Open Vaults with integrated KYC
- Integrate Vaults into exchanges and banks
Core Team
Nathan Allman: Founder & CEO
- Nathan first earned a Bachelor of Arts in Economics from Brown University. After that, Nathan continued to earn a Master of Business Administration (MBA) at Stanford University.
- After graduating, Nathan became a partner for relatively famous investment funds such as Prospect Capital Management and ChainStreet Capital over a period of 3 years.
- After that, Nathan really entered Wall Street when he took on Digital Asset Management at Goldman Sachs bank.
- After more than 2 years working with Goldman Sachs, Nathan decided to leave this group and start building Ondo Finance from February 2021.
Gabriel Bianconi: Chief Product Officer
- Gabriel spent 5 years at Stanford University and successfully earned 2 Bachelor’s and Master’s degrees in the same field, Computer Science.
- After graduating, Gabriel immediately started a business with Scalar Research – a consulting company on data science and artificial intelligence.
- After nearly 3 years with Scalar Research, Gabriel joined Ondo Finance in November 2021, about 9 months after Natha founded this project.
Romain Bourgois: Senior Product Manager
- Roman studied Management and Business at many different institutions such as Shanghai University of Finance and Economics or Audencia.
- Romain has spent a lot of time as a developer on the Web2 platform working at places such as Altran CIS, The Manitowoc Company, Delasource, Quatsuo.
- After that, Romain spent 8 years working and rose to high positions at Criteo – a global advertising company where Romain rose to Senior Product Manager.
- After quitting his job at Criteo, Romain first joined Ondo Finance as well as the crypto market with the same position as at Criteo starting from March 2022.
Investors
- August 17, 2021: Seed round successfully raised $4M led by Pantera Capital and a number of other funds such as: Genesis, Digital Currency Group, CMS, CoinFund, Chapter One, Bixin, Divergence, Protoscale Capital, The LAO, Stani Kulechov, Josh Hannah , Richard Ma, Diogo Monica, and Christy Choi.
- April 27, 2022: Successful Series A raising of $20M led by Founders Fund, Pantera Capital and participation from Coinbase Ventures, GoldenTree, Wintermute, Steel Perlot, Tiger Global, Flow Traders.
Tokenomics
Overview information about Ondo Finance Token
- Token Name: Ondo Finance
- Ticker: ONDO
- Blockchain: Ethereum
- Standard: ERC-20
- Contract: 0xfaba6f8e4a5e8ab82f62fe7c39859fa577269be3
- Maximum supply: 10,000,000,000
Token Allocations and Releases
- Coinlist Tranche 1 – 4%: Lock for 1 year and pay in installments over 18 months.
- Coinlist Tranche 2 – 1%: Lock for 1 year and pay in 6 months.
- Seed – 3%: Lock for 1 year and pay in installments over 24 months.
- Series A – 10%: Lock for 1 year and pay in installments over 24 months.
- DAO – 82%: Issuance will depend on DAO.
Exchanges
ONDO token does not support trading yet.
Ondo Finance’s Information Channel
- Webpage: https://ondo.finance/
- Twitter: https://twitter.com/OndoFinance
- Discord:
summary
Ondo Finance is a decentralized finance product that is solving some of the liquidity limitations on DeFi. Breaking the barrier between traditional finance and DeFi, promoting the process of applying DeFi to the world’s economy.
So, through this article I have clarified what Ondo Finance is? Overview of Ondo Finance cryptocurrency. Hope this article provides you with a lot of useful knowledge.