KEYTAKEAWAYS
- Ondo Finance, a leading DeFi platform, specializes in tokenizing Real World Assets, offering stable returns on blockchain-based U.S. Treasury bonds.
- Ondo’s core products, USDY and OUSG, provide short-term U.S. Treasury exposure with yields up to 5.20% APY for different investor classes.
- The ONDO token, serving as a governance utility within Ondo Finance, has appreciated 2,500% since its January 2024 launch.
CONTENT
Ondo Finance, a DeFi platform, excels in tokenizing Real World Assets, offering products like USDY and OUSG, and a governance token, ONDO, which has surged by 2,500%.
In April 2024, amid a bear market, Real World Assets (RWA) proved resilient, attracting significant investment due to their stability and the strategic initiatives of traditional financial institutions. Ondo Finance leverages decentralized finance (DeFi) to offer liquidity solutions for tokenized assets, providing investors with stable returns on blockchain-based U.S. Treasury bonds. After launching its token, ONDO, in January 2024, which rapidly appreciated by 2,500%, Ondo expanded into the Asia-Pacific, establishing a foundational office for its global strategy.
ONDO: A RWA TOKENIZATION PROTOCOL
Ondo Finance is a decentralized finance (DeFi) platform focused on tokenizing Real World Assets (RWA). The platform specializes in tokenized financial derivatives, such as U.S. Treasury bonds and money market funds, providing global investors the ability to indirectly invest in these financial products through blockchain infrastructure.
Ondo offers a suite of initial core products including tokenized cash equivalents and other high-quality fixed-income assets, enabling investors to diversify their asset allocations and achieve stable returns. Ondo currently has a division for issuing and managing tokenized financial products and a technology division developing decentralized finance protocols and blockchain solutions, gradually forming a robust RWA ecosystem.
Through multiple funding rounds, Ondo has raised over $46 million from institutions like Pantera Capital, Coinbase Ventures, and Founders Fund.
ONDO’S YIELD PRODUCTS: USDY AND OUSG
Currently, Ondo offers two core products: USDY and OUSG.
- USDY: a short-term U.S. Treasury RWA for retail investors, is a tokenized note backed by short-term U.S. Treasuries and bank demand deposits. Ondo adjusts its floating rate monthly, setting the token yield on the first business day of each month. The yield compounds automatically, gradually increasing the dollar value of USDY, which currently yields an annual rate of about 5.20% APY with a total TVL (Total Value Locked) of approximately $230 million. USDY is available for non-U.S. individuals and institutional investors who have completed KYC, supporting Ethereum, Solana, Mantle, and Sui, with tokens becoming transferable or tradable 40 days after successful capital deposit and purchase.
- OUSG: a short-term U.S. Treasury RWA for accredited investors, operates a 24/7 open subscription and redemption tokenized fund. The majority of its portfolio is currently held in BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), with the remainder in the BlackRock Federal Fund (TFDXX), bank deposits, and USDC for liquidity purposes. This fund primarily invests directly in funds related to U.S. Treasuries or directly in U.S. Treasuries themselves. Only individuals with a net worth exceeding $5 million or entities with assets over $25 million are eligible to invest, with a minimum transaction amount of $10,000.
WHAT IS ONDO TOKEN?
ONDO is a utility token within the Ondo Finance ecosystem, serving as a governance token with a provisional total supply of 10 billion, of which 14.43% is currently in circulation. ONDO token holders can not only submit proposals but also vote on rules for processing loan agreements and changes to product applications.
Moreover, ONDO tokens can be delegated to others for voting, allowing holders to flexibly participate in the governance of Ondo DAO and Flux Finance. In the DeFi sector, these tokens can also be used as collateral, enhancing their utility and incentivizing participation in governance.
IS ONDO A GOOD INVESTMENT?
Ondo Finance is becoming a prominent player in the RWA sector, focusing on tangible assets and structured products. With an experienced team, successful fundraising, and recent listings on major exchanges, Ondo Finance shows great potential.
According to the 2024 technical analysis of Ondo’s price, the highest forecasted price for this year is $1.65, while the lowest is expected to be $0.47. The average trading price is anticipated to be around $0.80.
However, investors should conduct thorough research and risk management before deciding on a long-term investment. Short-term price increases are possible, but it is crucial to closely monitor market dynamics.
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