Frequently Asked Questions
What are Ondo vaults?
Ondo's vaults allow investors to better balance risk with rewards while gaining exposure to yield-generating crypto-assets on Ethereum. 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.
Has Ondo been audited?
Ondo has complete multiple audits - read more here. Ondo is highly experimental software. As always, please be aware that audits do not guarantee a protocol's security.
Does Ondo have a token?
Yes, but it's non-transferrable at this time, so you won't be able to buy it anywhere for now. Learn more here.
The Ondo team will not contact you requesting funds or advertising a token sale. Please report anyone advertising an Ondo token to the moderators.