OpenDAO, a decentralized financial protocol, has introduced new ways to leverage the vast liquidity of real-world assets in the DeFi ecosystem. The protocol has implemented infrastructures that integrate with traditional assets, including stocks and real estate. It has also provided means to capitalize on the liquidity they provide for even more impressive yields.
According to OpenDAO, the next frontier for the DeFi landscape is the traditional asset market, where opportunities are limitless. Therefore, it is only a matter of time before crypto participants begin to introduce viable means of capturing the vastness of the global financial terrain. With this achieved, the scale of the crypto space and DeFi could easily rival or even surpass the valuation of the stock market or the $217 trillion worth real estate market.
To this end, OpenDAO has joined the raise for the implementation of functioning DeFi-based real tangible asset integration protocols. It is safe to say that this pursuit has conjured an innovative architecture for liquidity mining and decentralized financial systems. OpenDAO expects its innovation to fit into emerging market dynamics compelling enough to initiate at least 100x growth for the burgeoning cryptoverse.
Notably, by utilizing decentralized infrastructure as the foundation of its offering, OpenDAO has ensured that its product is universally accessible, regardless of the nationality, economic background, and financial bracket of interested users. As such, the project offers exposure to real estate, Apple, Facebook stocks, Bitcoin, and much more.
Also, OpenDAO looks to democratize the distribution of assets that are presently secluded for elite investors. Due to the magnitude of this project and its technology requirements, the development team has opted for unique models of stable and efficient asset pooling systems for real-world assets, albeit with the help of a few familiar DeFi implementations and partnerships with UMA, Ren, and others.
OpenDAO’s Liquidity Mining Operations
Firstly, OpenDAO has introduced CashBox, a mechanism that creates on-chain liquidity against off-chain assets like stocks and real estate. Per the information made available, CashBox will bring about a change as to how real-world assets are tokenized. Likewise, it has the infrastructural capacity to evolve the way startups carry out token sales. CashBox is basically a decentralized order book which incentivizes core contributors.
Furthermore, liquidity providers can supply stablecoins like DAI, USDT, and USDC to CashBox, which, in turn, will create a perpetual counterparty to users with tokenized real-world assets. Note that all these processes rely on automated and decentralized commands, thereby eliminating third-party risks. With this in place, anyone with real-world assets can tokenize their holdings and transfer them to the OpenDAO ecosystem to generate impressive returns.
Besides, DeFI investors can also provide liquidity to other users to meet the demands of a market that has untold potential and, at the same time, earn rewards. OpenDAO projects earnable APY to be between the 13% – 20% range. This projection takes into account the yield farming operations of the network’s OPM money market, which allows users to lend against real-world assets. Thus, the main goal is to create an open and free market where traditional asset holders can leverage the high liquidity of their holdings to generate extra returns.
More importantly, contributors are eligible to earn rewards in the form of the platform’s governance token. The development team, which comprises experts in securities, tokenization, and traditional finance, has opted for a DAO-based model of governance. Hence, the team has put in place systems to distribute governance among users by rewarding active participants with the OPEN token.
Of the total 100 million OPEN supply, the protocol will share 50 million OPEN as incentives. This governance token gives holders the voting power to influence changes on the OpenDAO network. OPEN holders will have a say in the assets onboarding process, the platform’s fee policy, and more. If all goes to plan, OpenDAO hopes to capitalize on an emerging trend to enable a fully decentralized global network of investors of all sizes.