DeFi Yield Source: What is Ondo Finance (ONDO)?

Ondo Finance is a blockchain finance system that provides users with tokenized versions of real-world assets (RWA). Thanks to Ondo’s decentralized financial system, investors can explore US-based, institutional-level securities.

What is a Real World Asset (RWA) in Short?

Real world asset (RWA) in crypto is an asset that exists in the physical world, but has been digitized and made available (or tokenized) for use in DeFi. DeFi is an ecosystem of financial applications that operate on blockchain networks such as Ethereum without intermediaries or central authorities. DeFi aims to create a more transparent and inclusive financial system utilizing smart contracts, cryptography, and peer-to-peer (P2P) networks.

How Does Ondo Finance (ONDO) Work?

Ondo Finance is a system revolving around the concept of tokenized assets. Securities representing traditional assets can include a variety of assets, and these assets can often be found in ETFs managed by leading companies such as BlackRock and Pimco. Ondo Finance purchases shares in these traditional assets and then uses its blockchain system to represent these fund shares as coins. The value of each coin can change depending on the value of the real world assets it represents. Users can buy and sell these tokenized real world assets through Ondo without having to directly purchase ETFs through traditional hedge fund managers.

Features of Ondo Finance

1. General Access Products: Offers items that anyone can explore without being heavily involved in Ondo Finance’s other services like lending protocols or short-term bonds.
2. USDY Token: The USD Yield (USDY), a stabilized real world asset backed by US Treasury bonds, provides DeFi yields at a rate of 5% APY to stabilized holders.
3. Qualified Access Products: Products only offered to qualified users and are generally designed for institutional level investors.
4. OMMF Token: It is a collateral form of stablecoin providing access to money market funds.
5. OUSG Token: Based on a short-term US Treasury bond ETF, and is a stable investment instrument.
6. Flux Financing: Provides lending protocols for users in need of extra crypto assets.
7. Ondo Token Bridge: Allows the various tokens in Ondo Finance to easily reach where they need to be.
8. Ondo Token Converter: Allows users to choose from multiple convenient methods to withdraw the money they earn from yield-generating Ondo Finance’s tokens.

What is Its Aim?

Ondo Finance aims to create the financial infrastructure of the future by combining the traditional financial system with blockchain technology. With this innovative approach, it aims to create a more efficient and accessible market. Furthermore, Ondo not only plans to offer securities based outside the US, but also plans to develop products that allow easy collaboration with standard hedge fund managers. By doing so, it aims to facilitate access to financial products for a wider user base. Ondo Finance also plans to implement a decentralized structure that provides control to users by transparently presenting the business operations of decentralized autonomous organizations (DAO). This is an innovative approach aiming to provide more transparency and trust in financial transactions.

Ondo Finance (ONDO) Tokenomics

ONDO offers a variety of tokens that investors can collaborate with; however, the native token ONDO is specifically used for voting in Ondo DAO. The total supply of 10 billion ONDO tokens will be released gradually over 2024. Unlike many other coins, ONDO does not have a rigid token distribution program. Instead, Ondo Finance plans to allow the Ondo DAO to vote on different distribution plans and modify the distribution plans over time. While 10% of all tokens are allocated to investors, the distribution of the remainder will be left to future Ondo DAO proposals.

How was Ondo Finance Founded?

Ondo Finance was founded by Nathan Allman, a graduate of Stanford University who focused on economics and business. After working in traditional finance institutions, Allman started getting interested in cryptocurrencies and realized the need for innovation in the finance industry. Therefore, he founded Ondo with the aim to bridge the gap between traditional finance markets and web3 finance.

Investors

Ondo was able to raise $24 million in funding by forming partnerships with significant companies like, Pantera, Wintermute and Coinbase Ventures.

Where to Buy?

If you want to invest in ONDO coin, it is quite simple to access it right now. Because it is traded on many exchanges. These exchanges are big exchanges such as Bybit, KuCoin or Gate.io. After clicking on the exchange from where you want to buy, you can complete your purchases after signing up.

Could ONDO Be a Sensible Investment Tool?

Ondo Finance became one of the highlighted DeFi projects of 2024 by bringing tokenized securities to the blockchain. This achievement provided impressive profits to Ondo token holders and could result in a significant increase in market value if it continues to attract institutional investors. However, since ONDO is still new, even small problems can affect prices for a long time, and they are vulnerable to regulatory changes. Ondo Finance is closely related to traditional finance markets; therefore, changing laws could decrease the value of its services and affect the price of ONDO tokens. Therefore, it is important for ONDO holders to be cautious and implement their strategies considering these factors.