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.
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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.
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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.
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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
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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.
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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
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Token Name: Ondo
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Ticker: ONDO
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Blockchain: Ethereum
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Token Standard: ERC20
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Contract: 0xfAbA6f8e4a5E8Ab82F62fe7C39859FA577269BE3
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Total Supply: 10,000,000,000
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Circulating Supply: 1,426,647,567 (Approximately 14.3%)
Token Use Case
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ONDO is used for community access sale, ecosystem growth, and protocol development.