OpenDAO Builds New Yield Dollar Interface on Top of UMA, Accepts BTC as Collateral

OpenDAO Builds New Yield Dollar Interface on Top of UMA, Accepts BTC as Collateral

PRESS RELEASE. OpenDAO is proud and excited 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 atydollar.opendao.io

For the past few months, OpenDAO has been working closely with the team at UMA to build a new interface for the Yield Dollar (yDollar) as part of UMA’s dapp mining initiative.

The aim is to create an interface which is more accessible and intuitive to use, whilst still leveraging the robust contracts which have been built by UMA.

The yield dollar will be a pre-cursor of sorts 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’re unfamiliar with the Yield Dollar, you can check outthis article written by Clayton of UMA.

As a quick overview, the Yield Dollar is a stable synthetic token which is minted by locking up ETH as collateral. The difference between the current iteration of the yield dollar and other stables is that there is a rolling 3 month expiry, at which point it will be redeemable for $1 of the collateral asset at the exact time of expiry.

Effectively, the yield dollar represents a fixed-rate, fixed-term loan.

Note: Due to the demand from users to buy yDollars, it is currently trading at a premium and thereby gives the minter the equivalent of a negative interest rate loan! For the time being, this means that participants are actually making money by minting yDollars.

OpenDAO is rolling out this phase first in order to become familiar with building on UMA. This will also allow both UMA and OpenDAO’S communities to get familiar with the minting process and evolve the interface and functionality over time.

To mint your first yield dollar, head on over toydollar.opendao.io

REN Protocol Integration

As part of this build, the team has also been working closely with the Ren Protocol team to allow Bitcoin to be used as collateral in a fully permissionless manner for the minting of the yield dollar as well.

By implementing RenVM, Bitcoin holders can now use their BTC as collateral for minting the yield dollar, and eventually USDO!

This allows those who are long BTC to mint a yield dollar with their BTC, convert to USDC or provide liquidity to the Y Dollar/USDC pool to earn rewards, and effectively earn a return whilst keeping your BTC.

You can go toydollar.opendao.io now to mint Yield Dollars with your BTC!

PHASE 2 (Single Asset USDO Stablecoin)

Phase 2 involves utilizing UMA’s upcoming perpetual contracts (currently being audited) to build the first iteration of OpenDAO’s USDO stablecoin.

This allows the minting of a stablecoin which does not expire like the Yield Dollar, giving it characteristics on par with other stables in the market.

Whilst the USDO will ultimately be backed by a basket of both on and off-chain collateral, the first iteration will be single asset on-chain collateral.

Initial collateral will be ETH and BTC (via renBTC) as the on-chain collateral, before moving to include other asset types including off-chain assets such as stocks and real estate in phase 3.

You can read more about the roadmap for USDO in the whitepaper here.

It is estimated that users will be able to mint USDO with ETH and BTC in early Q1 2021!

PHASE 3 (Multi Asset USDO Stablecoin)

In phase 3 OpenDAO intends to realise the ultimate form of USDO  —  a global stablecoin backed by a multitude of productive assets ranging from crypto to real world assets such as listed stocks and real estate.

To date they have already developed protocols which allow for the acceptance of off-chain assets as collateral, such as the CashBox system.

OpenDAO anticipates that by Q3 2021, the multi asset USDO stablecoin will be ready for minting and be exchangeable for other stablecoins via various liquidity pools.

Relevant Links:

OpenDAO Website: https://www.opendao.io

Telegram: https://www.t.me/opendaoTwitter: https://www.twitter.com/opendaoprotocol

Y Dollar Minter: http://ydollar.opendao.io/

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