In web2 platforms operate as closed silos. There is no composability and the platform owns your data. This means that a platform with significant size enjoys a massive advantage due to the datasets it owns. It has richer information that it can employ to outcompete other platforms, using it as a significant moat.
In the web3 world, users own their own data. Tokens are composable, there are either no walls to the garden or the walls are fairly easy to surmount if they exist. Users can take their business wherever they can extract the most amount of value without any…
USDO and other synthetic currencies can now be minted using a fork of Compound at omnicomp.ocp.finance
The design here is quite simple yet effective. USDO is minted via admin (And soon enough via DAO votes), but it enters circulation only when it is borrowed against at omnicomp.
This effectively separates USDO minting from the so called minter at omnicomp and allows us to have potentially many minters.
For instance once the boys at OCP have vetted our tech design in BSC we will bridge USDO to ETH and replicate the same tech design there to launch ETH version of USDO…
The OPEN project is focused on connecting real world assets to DEFI.
At a technical level, our key product offering (USDO) looks like Maker’s DAI. However we not only do USD, but also other currencies such as EUR, AUD, INR, MYR, JPY, SGD etc.
Separate to that, we will have a trading platform where all these currencies can be traded in a low slippage, highly capital efficient manner.
Our objective going forward is mainly to increase the adoption of these currencies.
We intend to do this by increasing the utility. The trading platform is just the start where these can…
This article is a continuation of the How USDO works article referenced above.
While the above article describes some of the mechanics of how the peg will be achieved for USDO, there is an inherently simple mechanism by which a hard peg will be established.
But first a primer on stable coins. While there are a variety of them we will for our purposes only review 2: sUSD (Synthetix) and DAI.
These are both synthetics, you lock in one asset and mint a new token that traces the price of something else (in this case the US Dollar).
This article should be seen as a continuation of my previous post in which I laid down the case for ETH.
While I covered the gas issues with ETH then, they were largely waved off. There was also an example laid down which compared cities and how building infrastructure and network effects takes time and how this would work in favor of ETH.
Chains are like super markets, you want to go to the one which has the most amount of shops, most choices. You do not want to go to one mall to buy one thing and another to…
The Ocean O is a 12 month yield dollar launched by OPEN DAO and built on the UMA protocol.
It allows Ocean holders to lock their Ocean tokens and mint Ocean O synths which trace the price of USD.
From time to time the Ocean O will trade either above or below the peg.
However it always locks $1 worth of Ocean in collateral, which means its inherent value is $1.
Market forces should then account for this and bring the price of Ocean O back to $1.
This leads to some interesting arbitrage opportunities.
Suppose the O dollar trades…
The key problem with bridging real world assets to DeFi is the bridge. To enunciate it boils down to 2 key problems:
Till date we have focused on the second aspect, which arguably is the more difficult bit.
However the first issue of how do you read real world events is also a difficult one.
Sure Oracles exist…
UMA recently launched call options primitives
OPEN DAO plans to utilize them to launch CALL options for OPEN tokens. But instead of doing it via treasury we want to do it in a manner that incentivizes the community.
Consider you have a stack of OPEN tokens. You can lock them in UMA EMP contracts and mint a synthetic that works like a CALL option (redeemable only on expiry).
You can set a target price of $3 by June 30, 2021. If the target price is hit the option holders can redeem their options to claim the OPEN tokens.
We are offering 50000 OPEN to any team that builds a multi collateral multi currency system based on the beta money market code from Open DAO.
Our long term goal is to build a suite of stable coins denominated in various currencies backed by a range of collateral including onchain and offchain real world assets.
A multi collateral multi denominated stable coin architecture.
What we have right now is the Y Dollar built on top of the UMA protocol. It has a single collateral model and it expires in a fixed period of time.
We are working on a model…
This article is not legal advice. I am not a securities lawyer and please do not take this post as the primary basis of your operations. I absolutely intend to do significant generalizations, which may or may not be applicable to your specific situation, so make sure to validate if what I say here applies to you.
I do however have a significant amount of experience in the securities space and have authored several disclosure documents including full retail prospectuses, PDS as well accredited only IMs etc. …