1. Project Introduction
Ondo Finance (ONDO) is a decentralized institutional-grade financial protocol dedicated to improving the security, efficiency, and accessibility of financial services through institutional-grade on-chain products. The platform consists of a technical department focused on developing on-chain financial software and an asset management department that creates and manages tokenized products.
Ondo Finance aims to incubate protocols that support tokenized real-world assets and traditional cryptocurrencies. It is the first company to tokenize U.S. Treasury bond exposure. Its core business includes providing low-risk, stable interest-bearing, scalable fund products (such as U.S. Treasury bonds, money market funds, etc.), providing an alternative to stablecoins for on-chain investors, so that holders rather than issuers earn most of the returns on 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: The financial instruments and products provided by Ondo Finance have 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 the diversified needs from low-risk fixed income to high-return variable income.
2. Tokenize real-world assets: Tokenize real-world physical assets (such as U.S. Treasury bonds, money market funds, etc.) and introduce them to the blockchain to make them more liquid and accessible. Through tokenization, these traditional assets can be traded and managed on the blockchain, which improves the liquidity and transparency of assets and provides investors with more investment opportunities and flexibility.
3. Decentralized governance: Ondo DAO determines the future development direction and strategy of the platform through voting by ONDO token holders. The decentralized governance mechanism ensures the transparency and user participation of the platform, allowing each token holder to vote on major decisions and policy changes of the platform, truly realizing a community-driven development model.
3. Market value expectations
As of the time of writing, the token’s current price is fluctuating around 0.94, with a market value of $1.3 billion. Compared to the various services and products provided by Ondo, the current market value may just be the starting point of the stars and the sea.
Ondo Finance offers a variety of low-risk, high-stability investment products, such as OUSG and USDY backed by U.S. Treasuries, which provide investors with more attractive options than traditional stablecoins, ensuring the security and returns of investments. At the same time, the platform provides fixed and variable income options through Ondo Vaults to meet the needs of investors with different risk preferences.
In addition, Ondo Finance cooperates with major financial institutions and blockchain platforms, giving the platform strong application potential in both DeFi and traditional financial markets. Through ONDO tokens, holders can also participate in the governance of Ondo DAO and determine the development direction and major decisions of the platform.
With Ondo's continuous innovation in providing safe, stable and high-yield investment products, as well as the market's value discovery and hype of the RWA sector, Ondo is expected to show amazing growth in the future.
Meanwhile, in the short term, the official announcement was made two days ago: its yield-based stablecoin USDY can now be used as collateral on the Solana-based perpetual contract protocol Drift Protocol. In addition, users can also deposit and borrow USDY on Drift. In addition, Ben Grossman, who has 4 years of experience as Amazon's product marketing manager, said on his social platform that he has joined Ondo Finance to be responsible for marketing.
Currently, the token's daily K is at the bottom range and the M120 support level. Combined with the positive news, it is expected to have rising potential in the short term.
4. Economic Model
Ondo Finance's economic model aims to provide investors with diversified and stable returns while using blockchain technology to improve 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 the OUSG fund: the accumulation type (OUSG) and the re-based type (rOUSG).
Accumulator (OUSG): These tokens increase in value as the value of the underlying assets grows, making them suitable for cash management and as collateral for smart contracts.
Rebased (rOUSG): The price of this type of token is fixed at $1, and the profit distribution is realized by increasing the number of rOUSG tokens. It is suitable as a profit tool for settlement or exchange.
Investors can easily convert between OUSG and rOUSG, both tokens are instantly investable and redeemable on the platform, with management fees as low as 0.15% and waived until January 1, 2025.
2. USDY Stablecoin
USDY is an interest-bearing stablecoin backed by short-term U.S. Treasuries and bank deposits, providing institutional-grade returns accessible to individual investors around the world. The minimum investment and redemption amount for USDY is set at $500, with plans to further reduce this threshold in the future, making 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 returns, and 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 yield in a risk-isolated environment while leveraging these tokenized assets for lending or leveraged yield 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 the token economic model of Ondo Finance, the specific distribution of tokens is as follows:
Community access 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%).
5. Team and Financing
Ondo Finance is founded and managed by an experienced team of traditional finance and decentralized finance (DeFi) experts. The founding team includes members from well-known companies such as Goldman Sachs, Facebook, Microsoft, Symbiont, BadgerDAO, etc.
Co-founder Nathan Allman and his team are focused on bringing traditional financial products and services into the blockchain space to increase the transparency and accessibility of financial services.
Since its establishment, Ondo Finance has completed multiple rounds of financing, with a total financing amount of more than 30 million US dollars. Major 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.
Seed Round Financing: In August 2021, Ondo Finance completed a $4 million seed round led by Pantera Capital.
Series A Financing: In April 2022, Ondo Finance completed a US$20 million Series A financing round led by Founders Fund and Pantera Capital. Other investors included Coinbase Ventures, GoldenTree, Wintermute and Tiger Global.
Public Round Financing: On July 6, 2022, Ondo Finance completed a $10 million public round of financing, bringing its valuation to $535 million.
The financing will help Ondo Finance expand its range of structured products and continue to advance its vision of becoming a decentralized investment bank.
VI. Risk Warning
1. The cryptocurrency market is volatile and large price fluctuations may lead to investment losses. You should make decisions carefully and fully understand the market risks.
2. There may be risks such as technical loopholes and hacker attacks, which may affect the operation of the platform and the interests of investors.
