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Decoding Ondo Finance: Market Performance and Future Outlook

远山洞见2024/07/09 06:15
By:远山洞见
I. Project introduction
 
Ondo Finance (ONDO) is a decentralized institutional-level financial protocol dedicated to improving the security, efficiency, and accessibility of Financial Services through institutional-level on-chain products. The platform consists of a technology department dedicated to developing on-chain financial software and an asset management department dedicated to creating and managing tokenized products.
 
Ondo Finance aims to incubate protocols that support tokenized real-world assets and traditional cryptocurrencies. It is the first company to tokenize exposure to US Treasury bonds. Its core business includes providing low-risk, stable interest-bearing, scalable fund products (such as US Treasury bonds, money market funds, etc.), providing on-chain investors with an alternative to stablecoins, allowing holders rather than publishers to earn most of the underlying assets. This innovation not only increases investment diversity, but also enhances the liquidity and accessibility of on-chain assets.
 
II. Project highlights
 
1. Institutional-level products: Ondo Finance offers financial instruments and products with institutional-level security and returns, suitable for investors with different risk preferences. These products provide users with reliable investment options through strict risk management and compliance mechanisms, meeting diverse needs from low-risk Fixed Income to high-return variable income.
 
2. Tokenization of real-world assets: Tokenizing real-world physical assets (such as US Treasury bonds, money market funds, etc.) and introducing them into the blockchain makes them more liquid and accessible. Through tokenization, these traditional assets can be traded and managed on the blockchain, improving the liquidity and transparency of assets, providing investors with more investment opportunities and flexibility.
 
3. Decentralized governance: Ondo DAO decides the future development direction and strategy of the platform through the votes of ONDO token holders. The decentralized governance mechanism ensures the transparency and customer engagement of the platform, allowing every token holder to vote on major decisions and policy changes of the platform, truly realizing a community-driven development model.
 
III. Market value expectations
 
At the time of writing, the current price of the token fluctuates around 0.94, and the market value is 1.30 billion US dollars. Compared with the various services and products provided by Ondo, the current market value may only be the starting point of the vast sea of stars.
 
Ondo Finance offers a variety of low-risk, high-stability investment products, such as OUSG and USDY, which are backed by US Treasury bonds. These products provide investors with more attractive options than traditional stablecoins, ensuring investment safety and returns.
 
At the same time, the platform provides Fixed Income and Variable Income options through Ondo Vaults to meet the needs of investors with different risk preferences.
 
In addition, Ondo Finance collaborates with major Financial Institutions and blockchain platforms, making the platform have strong application potential in both DeFi and traditional Financial Marekt. Through ONDO tokens, holders can also participate in the governance of Ondo DAO, determining the platform's development direction and major decisions.
 
With Ondo's continued innovation in providing safe, stable, and high-yield investment products, as well as the market's value discovery and speculation on the RWA sector, it is expected that Ondo will show amazing growth in the future.
 
At the same time, in the short term, the official announcement two days ago stated that its revenue-based stablecoin USDY can now be used as collateral on Drift Protocol, a perpetual contract protocol based on Solana. In addition, users can deposit and borrow USDY on Drift. In addition, Ben Grossman, who has 4 years of experience as an Amazon product marketing manager, stated on his social media platform that he has joined Ondo Finance and is responsible for marketing.
 
Currently, the token daily K is in the bottom range and M120 support level. Coupled with positive news, it is expected to have short-term upward potential.
 
IV. Economic model
 
Ondo Finance's economic model aims to provide investors with diversified and stable returns, while using blockchain technology to enhance the transparency and accessibility of Financial Services. The following are the main economic mechanisms and product features of the platform.
 
1. OUSG and rOUSG funds
 
Ondo Finance offers two versions of OUSG funds: cumulative (OUSG) and heavy-based (rOUSG).
 
Cumulative (OUSG): This type of token appreciates as the underlying asset value increases, making it suitable for cash management and as collateral for smart contracts.
 
Heavy base type (rOUSG): The price of this type of token is fixed at 1 US dollar, and the profit distribution is achieved by increasing the number of rOUSG tokens. It is suitable as a profit tool for settlement or exchange.
 
Investors can easily switch between OUSG and rOUSG, both of which can be invested and redeemed instantly on the platform, with management fees as low as 0.15% and no management fees until January 1, 2025.
 
2. USDY stablecoin
 
USDY is an interest-bearing stablecoin backed by short-term US Treasury bonds and bank deposits, providing institutional-grade returns accessible to individual investors worldwide. The minimum investment and redemption amount for USDY is set at $500, and plans to further lower this threshold in the future to make it easier for small investors to participate.
 
3. Ondo Vaults
 
Ondo Vaults is one of the core mechanisms of the platform, allowing users to choose between Fixed Income (FY) and Variable Income (VY) investments. Fixed Income investors receive stable returns, while variable income investors maximize returns through leverage. Ondo Vaults uses smart contracts to manage loan terms, ensuring risk isolation and customization for each Vault.
 
4. Flux Finance
 
Flux Finance is a decentralized lending protocol that supports high-quality tokenized securities such as OUSG tokens. Users can deposit stablecoins on the platform and earn profits. Users who deposit assets will receive fTokens, similar to the wstETH model. The core value of Flux Finance is that it allows users to earn profits in a risk-isolated environment, while using these tokenized assets for loans or leveraged income strategies.
 
5. ONDO token
 
Ondo Finance's native token, ONDO, controls Ondo DAO and determines the platform's development direction and strategy through a decentralized governance mechanism. The total supply of ONDO tokens is 10 billion. According to Ondo Finance's token economy model, the specific distribution of tokens is as follows:
 
Community visit sales: 198,884,411 (~ 2.0%);
 
Ecosystem growth: 5,210,869,545 (~ 52.1%);
 
Protocol development: 3,300,000 (33.0%);
 
Private placement: 1,290,246,044 (~ 12.9%).
 
V. Team and financing
 
Ondo Finance is created and managed by an experienced team of traditional finance and decentralized finance (DeFi) experts. The founding team includes members from well-known enterprises such as Goldman Sachs, Facebook, Microsoft, Symbiont, and BadgerDAO. Co-founder Nathan Allman leads the team to focus on introducing traditional financial products and services into the blockchain field to improve the transparency and accessibility of Financial Services.
 
Since its establishment, Ondo Finance has completed multiple rounds of financing, with a total financing amount exceeding $30 million. The main investors include well-known venture capital firms Founders Fund and Pantera Capital. These funds will be used to expand the team size, develop new products, and improve the service quality of the platform.
 
In August 2021, Ondo Finance completed a $4 million seed round financing led by Pantera Capital.
 
In April 2022, Ondo Finance completed a $20 million Series A financing led by Founders Fund and Pantera Capital, with participation from Coinbase Ventures, GoldenTree, Wintermute, and Tiger Global.
 
On July 6, 2022, Ondo Finance completed a $10 million public financing round, bringing its valuation to $535 million.
 
The financing will help Ondo Finance expand its range of structured products and continue to drive its vision of a decentralized Investment Bank.
 
VI. Risk Warning
 
1. The cryptocurrency market is volatile, and large price fluctuations may lead to investment losses. Therefore, cautious decisions should be made and market risks should be fully understood.
 
2. It may face risks such as technical vulnerabilities and hacker attacks, which affect the operation of the platform and the interests of investors.
 
VII. Official link
 
 
 
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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