Ondo (ONDO)
Ondo Finance is a platform designed to provide tokenized real-world asset (RWA) solutions, enhancing access to decentralized finance (DeFi) yields and catering to various risk preferences. Established in March 2021 by Nathan Allman, a former Goldman Sachs employee, Ondo Finance offers a permissionless protocol that supports the creation of risk-isolated, fixed-yield loans secured by yield-generating crypto assets.
Overview
| Ticker | ONDO |
| Category | Ethereum Ecosystem |
| Website | https://ondo.finance/ |
| @OndoFinance | |
| Telegram | ondofinance |
| Contract Addresses | |
|---|---|
| ethereum | 0xfa...e3 Copied! |
Ondo Finance aims to facilitate the adoption of decentralized finance among mainstream investors by enabling precise risk management. By offering risk-averse investors access to DeFi yields with transparent and managed risk, the platform seeks to expand DeFi's reach. Simultaneously, it allows DeFi-native investors to pursue higher potential returns. Ondo's mission is to democratize institutional-grade financial products and services, using blockchain technology to improve financial infrastructure and accessibility. The company blends technical advancements with traditional finance practices, including investor safeguards, transparent reporting, legal compliance, and robust product structuring. Ondo operates an asset management division for creating tokenized financial products and a technology division for developing DeFi protocols.
Products
Ondo Token Bridge
The Ondo Token Bridge enables seamless transfers of Ondo tokens across multiple blockchains. Through partnerships with technologies such as Axelar and LayerZero, Ondo has integrated advanced multi-chain communication systems and a unique risk management layer. This ensures secure and efficient bridging of Real World Assets (RWAs). The bridge features security measures that scale with the amount being bridged, utilizes proven bridge technologies, and employs a burn-and-mint mechanism instead of locking tokens, enhancing security.
Flux Finance Protocol
Initially developed by Ondo Finance, Flux Finance is a peer-to-peer lending protocol that supports both permissionless and permissioned assets. Users can deposit stablecoins to earn interest and receive fTokens, which represent a claim on the deposited assets plus interest. These yield-bearing assets can be further utilized in DeFi for layered yield strategies. Flux Finance allows users to earn supply-side APYs on stablecoins and provides accredited investors leverage on risk-free assets.
OMMF
OMMF is a USD-pegged security token backed by US money market funds, distributing interest to holders in additional OMMF tokens. Though limited to qualified purchasers and accredited investors, retail access is available through Flux Finance. OMMF maintains a stable $1 value, suitable for settlement and collateral in OTC trading and lending, supported by on-chain stablecoin reserves.
ONDO
ONDO is the governance token for Ondo Finance and its Flux Finance protocol, enabling the community to influence the platform's direction. Token holders can propose and vote on platform updates. The token has a total supply of 10 billion and was made available for trading on leading cryptocurrency exchanges after a broad pre-sale distribution.
OUSG
OUSG, or Ondo Short-Term US Government Treasuries, provides access to tokenized short-term US Treasuries with 24/7 subscription and redemption options. Known for their stability and liquidity, US Treasury bills are considered secure investments. OUSG's portfolio primarily includes the BlackRock USD Institutional Digital Liquidity Fund, with additional allocations to BlackRock’s FedFund, bank deposits, and USDC for liquidity.
Rebasing
Rebasing involves adjusting the total token supply by a rebasing factor to maintain price stability and distribute yield. It modifies all token holder balances using shares representing a claim on a percentage of the total token supply.
rOUSG
rOUSG is a 'Wrapped' version of OUSG, with each rOUSG token corresponding to a certain amount of OUSG locked within a wrapper contract. This process involves minting rOUSG tokens upon investment and redeeming them to unlock OUSG tokens, maintaining the total supply of OUSG through wrapped and non-wrapped forms.
USDY
The US Dollar Yield Token (USDY) is a tokenized note backed by short-term US Treasuries and bank demand deposits, offering non-US individuals and institutions a compliant, interest-bearing, USD-denominated stablecoin. USDY combines stablecoin access with yield generation, following a structured process to ensure compliance with regulations. It targets a different audience than other Ondo products like OUSG and OMMF, providing unique return and risk profiles.
Partnerships
Fei Protocol
In November 2021, Ondo Finance and Fei Protocol collaborated with several DeFi protocols to enhance decentralized exchange liquidity through the Liquidity-as-a-Service (LaaS) offering, deploying $100M for this initiative.
Frax Finance
In December 2021, a partnership with Frax Finance was established to enhance LaaS by using $FRAX provided by Frax itself as liquidity for token issuers, without upfront costs for Frax.
Angle & Paladin
In May 2022, Ondo partnered with Angle and Paladin to use the Liquidity-as-a-Service offering with a euro-pegged stablecoin, introducing the agEUR-as-a-Service.
Polygon
In July 2023, Ondo partnered with Polygon Labs to promote institutional-grade product adoption in the DeFi ecosystem, leveraging Polygon's scalability and cost-efficiency.