What is Ondo Finance? Overview of ONDO Token?

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What is Ondo Finance?

Ondo Finance (ONDO) is a dedicated financial platform that focuses on providing solutions for organizations, emphasizing the use of Real World Assets (RWA). Leveraging blockchain technology, Ondo establishes an infrastructure to create a transparent, efficient, and accessible investment environment for organizational clients.

In essence, Ondo Finance aims to become an on-chain investment bank tailored for organizations, concentrating on products centered around Real World Assets (RWA).

Ondo Finance Products

Initially a project in the Yield Strategy domain, Ondo Finance offered users the ability to choose risk levels and profits based on personal preferences. Their second product was Liquidity-as-a-Service (LaaS) – a service for liquidity leasing.

However, with the market decline in 2022 and a substantial decrease in DeFi transaction volume, Ondo faced challenges in market competitiveness. Consequently, they made a significant change, entirely removing old products and focusing on developing solutions for the Real World Assets sector.

New products from Ondo Finance include:

USDY Token – US Dollar Yield Token

USDY represents a tokenized version of U.S. government bonds and bank deposits. While not labeled as a stablecoin, USDY exhibits similar characteristics, pegged to the value of 1 USD and freely tradable among investors.
The unique aspect of USDY is that it allows holders to earn interest from government bonds, making it a yield-bearing token rather than a standard stablecoin. The current committed yield for USDY is 5.1%, subject to monthly adjustments based on underlying asset fluctuations.
Collateral assets are monitored and managed by a third party, Ankura Trust, ensuring asset security for customers even in the event of Ondo Finance’s bankruptcy.

OUSG – Ondo Short-Term US Government Bond Fund

OUSG is a product designed for users to profit from short-term U.S. government bond funds. Essentially, OUSG is a tokenized version of a U.S. government short-term bond ETF.
The primary investment portfolio for OUSG is expected to include the iShares Short Treasury Bond ETF (SHV), a BlackRock ETF. OUSG’s APY (Annual Percentage Yield), provided by Ondo, is 4.76% at the time of writing.

OMMF – Ondo US Money Markets

OMMF, an upcoming product, allows users to invest and earn profits from traditional financial instruments. Unlike OUSG, OMMF focuses on U.S. government money market funds.
OMMF is the lowest-risk product among the three, offering a lower yield. Its APY at the time of writing is 4.73%.

Overview of ONDO Token

Basic Information

Token Name: Ondo
Ticker: ONDO
Blockchain: Ethereum
Token Standard: ERC20
Contract: 0xfAbA6f8e4a5E8Ab82F62fe7C39859FA577269BE3
Total Supply: 10,000,000,000
Circulating Supply: 1,426,647,567 (Approximately 14.3%)

Token Use Case

ONDO is used for community access sale, ecosystem growth, and protocol development.

Token Allocation

Community access sale: ~2%
Ecosystem growth: ~52.1%
Protocol development: 33%
Private sales: ~12.9%

Token Vesting

Community sale (Coinlist): 90% unlocked at TGE, remaining 10% linear vesting over 12 months.
Ecosystem growth: 24% (1.25 billion) unlocked at TGE, the rest unlocked linearly every 12 months.
Protocol development: Locked for 12 months, then linearly unlocked every 12 months.
Private sale: Locked for 12 months, then linearly unlocked every 12 months.

Development Team

Nathan Allman – Founder & CEO: Experience at ChainStreet Capital, Prospect Capital Management, and previously managed digital assets at Goldman Sachs.
Justin Schmidt – Chairman & COO: Extensive experience in traditional and DeFi finance with roles at Merrill Lynch, WorldQuant LLC, LMR Partners, Seven Eight Capital, Goldman Sachs, and Talos.
Romain Bourgois – Product Director: Over 8 years of product development experience, worked in various roles related to product development at Criteo.

Investors and Partners

Raised a total of $46 million USD through various funding rounds, with the latest round from the community through the Coinlist platform successfully raising $22 million USD at a token price of $0.055 USD.
Before that, Ondo conducted a Seed round, securing $4 million USD, led by Pantera Capital, along with participation from DCG (the company behind Grayscale), CMS Holdings, and several individual investors.
The Series A funding round occurred in April 2022, with a fundraising amount of $20 million USD, led by Pantera Capital and Founders Fund. Noteworthy participation in this round included prominent names in the crypto market such as Coinbase Ventures and Wintermute.

Conclusion

Ondo Finance emerges as a project with positive vision and strategic flexibility in its development approach. With the growth of the cryptocurrency market in general and the Real World Asset sector in particular, Ondo Finance is gradually proving its influence.
We hope that the information provided about the project will be beneficial for you in making your investment decisions.

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