PRESS RELEASE. OpenDAO is proud and pleased to announce that it is one of the first DeFi projects to participate in UMA’s dapp mining program.
Check out the new Yield Dollar interface at ydollar.opendao.io
In recent months, OpenDAO has worked closely with the UMA team to build a new interface for the Yield Dollar (yDollar) as part of UMA’s dapp mining initiative.
The goal is to create an interface that is more accessible and intuitive to use, while still leveraging the robust contracts drafted by UMA.
The yield dollar will be a sort of pre-cursor to the USDO, OpenDAO’s multi-collateral-backed stablecoin, which will also be built on UMA.
PHASE 1 (Yield Dollar)
Phase 1 involves building a new interface for UMA’s existing Yield Dollar (yDollar) product. If you are not familiar with the Yield Dollar, you can check out This article written by Clayton from UMA.
To get a quick overview, the Yield Dollar is a stable synthetic token that is struck by locking ETH as collateral. The difference between the current iteration of the yield dollar and other stables is that there is a rolling 3-month expiration, at which point at the exact time of expiration it will be redeemable for $ 1 of the collateral.
In effect, the yield dollar represents a fixed-rate, fixed-term loan.
Note: Due to user demand to buy yDollars, it is currently trading at a premium thus giving the minter the equivalent of a loan with a negative interest rate! For now, this means that participants actually earn money by hitting yDollars.
OpenDAO first rolls out this phase to familiarize yourself with building on UMA. This allows both UMA and OpenDAO’s communities to become familiar with the coinage process and develop the interface and functionality over time.
To hit your first revenue dollar, go to ydollar.opendao.io
REN protocol integration
As part of this build, the team has also worked closely with the Ren Protocol team to allow Bitcoin to be used as collateral in a completely permission-less way to hit the return dollar.
By implementing RenVM, Bitcoin holders can now use their BTC as collateral for hitting the return dollar, and ultimately USDO!
PHASE 2 (Single Asset USDO Stablecoin)
Phase 2 involves using UMA’s upcoming perpetual contracts (currently under review) to build the first iteration of OpenDAO’s USDO stablecoin.
This makes it possible to hit a stablecoin that does not expire like the Yield Dollar, giving it characteristics similar to other stables in the market.
While the USDO will eventually be backed by a basket of both on- and off-chain collateral, the first iteration will be single asset on-chain collateral.
You can read more about the roadmap for USDO in it whitepaper here.
PHASE 3 (Multi Asset USDO Stablecoin)
In phase 3, OpenDAO aims to realize the ultimate form of USDO – a global stablecoin backed by a multitude of productive assets, ranging from crypto to real assets such as listed stocks and real estate.
To date, they have already developed protocols that enable the acceptance of off-chain assets as collateral, such as the CashBox system.
OpenDAO expects that by Q3 2021 the multi-asset USDO stablecoin will be ready to strike and be exchangeable for other stablecoins through various liquidity pools.
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