Ondo Finance
What is Ondo Finance?
Ondo is a DeFi protocol that allows investors to better balance risk with rewards while gaining exposure to yield-generating crypto-assets on Ethereum. Ondo achieves this through Vaults, in which investors pool capital to access differing degrees of risk and reward. ‌ Ondo Vaults generate yield through providing liquidity on DeFi protocols like Sushiswap and pay out returns to investors in fixed and variable yield tranches. Fixed tranches provide liquidity providers with a steady yield and reduced downside risk. Variable tranches provide liquidity providers with leveraged exposure to both the upside and risks of the invested collateral. ‌
What is the subscription period?
Before each Ondo Vault is deployed, there is a subscription period -- a set amount of time during which LPs can make requests to invest in either the fixed or variable tranche. Once the subscription period ends and the Vault is deployed, additional capital cannot be added to that Vault.
Why is there a subscription period?
Ondo forces the fixed and variable tranches to each comprise 50% of a Vault's assets. This way, the risk profile of each tranche is knowable in advance. The fixed tranche is initially a 50% loan-to-value position and the junior tranche is initially a 2x levered position. Additionally, with a 50 / 50 constraint on the size of the tranches, liquidity providers to the fixed tranche can contribute one of the two assets comprising an AMM's liquidity pool and liquidity providers to the variable tranche can contribute the other asset.
What is Ondo’s guarded launch?
Ondo’s guarded launch implements an approximately $5m protocol-wide cap. The purpose of the guarded launch is to minimize the risk of losses of particularly large amounts of liquidity provider assets in the event of a security exploit. We will increase then remove the TVL caps over time.
How does the guarded launch work?
The core Ondo smart contracts enforce the caps at the end of the subscription period, but users can technically still deposit an unlimited amount of assets until the end of the period. We will remove Vaults from the ondo.finance web application once the cap is hit, and we would discourage users from making subscription requests to a Vault after it has been removed from ondo.finance as those requests are very unlikely to be filled. Subscription requests that come in after the cap is reached will be available to be reclaimed by users at the end of the subscription period.
Has Ondo been audited?
Ondo has complete three audits -- one by Quantstamp, one by Peckshield and one by Certik. Ondo is highly experimental software. As always, please be aware that audits do not guarantee a protocol's security.
Does Ondo have a token?
Ondo has no token at this time. The Ondo team will not contact you requesting funds or advertising a token sale. Please report anyone advertising an Ondo token to the moderators.
How can I get involved?
If you or someone you know is interested in creating an Ondo Vault, or if you have ideas on Vaults that others should create, please let us know in #vaults in Discord. If you can help us with ideas or introductions to wallets, aggregators, front-ends, etc. that we should be integrating with, please let us know in #partnerships in Discord. If you are interested in a job with the Ondo core development team, please send a brief introduction to [email protected] We are hiring across smart contract development, front-end development, and business development / growth.
Last modified 24d ago
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