DeFi is much more the playground of Ethereum (ETH) than Bitcoin (BTC). Although, Satoshi Nakamoto’s baby is increasingly sought after by DeFi actors. OpenDAO and UMA are working hand in hand to make the Yield Dollar (yDOllar) more accessible, while preparing for the future birth of the USDO stablecoin.
For a more intuitive Yield Dollar
In a press release dated December 23, 2020, OpenDAO announced its participation in the ’mining programUMA.
This collaboration should lead to the creation of a new, easier-to-use interface for the Yield Dollar, while taking advantage of the robust contracts developed by UMA.
The Yield Dollar is a stablecoin mined by blocking Ethers warranty. Its current version has a rolling maturity of 3 months, after which it is repayable up to USD 1 of the collateral asset.
The first phase of the project will enable communities toUMA and to OpenDAO to become familiar with the process of forging the token.
OpenDAO also worked closely with the protocol team REN to allow Bitcoin to be used as collateral to create a Yield Dollar and possibly the stablecoin USDO.
The holders of BTC in a long position will therefore be able to obtain Yield Dollars, convert this to USD Coin (USDC), or provide liquidity to the pool yDollar /USDC and get compensation.
USDO: a bag of assets as collateral
The 2nd phase will consist of the use of perpetual contracts ofUMA for the production of the first versions of stablecoin USDO.
TheUSDO does not have an expiration period, giving it similar characteristics to other stablecoins in the market.
This first iteration of theUSDO will be that of a token backed by a single type of on-chain asset. The initial guarantee will be theETH then the BTC, thanks to the protocol RenBTC.
In phase 3, the final version of theUSDO, a stablecoin backed by a multitude of assets, should be operational.
The guarantees should cover a wide range of assets: cryptocurrencies, publicly traded stocks and real estate.
OpenDAO is planning a USDO stablecoin secured by multiple assets, exchangeable with other stablecoins through different liquidity pools, by Q3 2021. OpenDAO wants to link physical assets to DeFi. He has in the past developed protocols for using off-chain assets as collateral for a stablecoin. yDollar, USDO: either the creator is a fan of the greenback while being cryptophyle – which is rare – or he’s looking to compete with Uncle Sam.
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