What is Ondo Finance? Overview of ONDO Token?

Ondo Finance (ONDO) is a dedicated financial platform that focuses on providing solutions for organizations, emphasizing the use of Real World Assets (RWA)

What Is Ondo Finance? Overview Of Ondo Token?_65d5d0969eeb3.webp

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

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  • 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

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  • 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