Ondo Finance’s DAO, native token coming soon with US$20 mn capital boost

April 28, 2022 04:28 AM AEST | By Versha Jain

Ondo Finance’s DAO, native token coming soon with US$20 mn capital boost — Image source: © Jiraart1986 | Megapixl.com

How does Ondo Finance work?

Ondo is building a decentralized investment bank to connect stakeholders in DAOs, institutions, and retail investors. Ondo Finance matches those with capital and those who need them like a traditional bank by creating customized financial products. The decentralized investment bank allows organizations to offer products to investors.

The company’s first primitive decentralized structured product offers a choice between more returns and downside protection. It expanded to other use cases such as Liquidity-as-a-service (LaaS) to match DAOs with underwriters to provide liquidity for DAO’s native token.

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Its plan includes building vaults that bundle yields with algorithmic stablecoins and vaults across different blockchains. The new vault will help the company grow its ecosystem and user base. The firm has plans to expand its product compatibility with Curve and Convex protocol and integration with web2 fintech, crypto exchanges, and custodians.

The algorithmic stablecoins and expansion of DeFi to different blockchains would result in more yield opportunities. Ondo will allow investors to get passive exposure to the yield opportunities while offering downside protection and enhanced returns, said Paul Veradittakit, partner at Pantera Capital.

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CoinDesk reported that Ondo has partnered with over ten decentralized autonomous organizations (DAO), including Terra, Fei etc. and has around US$200 million in deposited liquidity into the protocol.

Bottom line:

The firm plans to have its own decentralized autonomous organization and a native token, ONDO. The token will provide voting rights in DAO for making strategic decisions such as partnerships with stablecoins, chains, and decisions about smart contracts.

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