Earlier this year, DeFi exploded to the unseen heights. From a humble beginning at the start of this year, it progressed to the value exceeding the initial one by thousand times. This all serves as a proof of the increasingly important role that DeFi starts occupying in our lives. Right now, the field is close to bringing the revolutionary change to many areas of our lives – and financial management is just one area to mention.
Despite this fact, the gap between traditional financial markets and a newly-born fetish of decentralized finance remained open. While DeFi is only in its infant stage, the stock market is still a preferred way for companies to trade their value and attract investment flow. This may explain why the sizes of these two are so different – the size of the US stock market is $217 trillion, which seems like a mammoth value compared to the humble $14.41 billion stored in DeFi. But now, there comes a solution that stores a promise to build a bond between these two realms and even merge them into one – its name is OpenDAO.
The bridge between DeFi and the world of real finance
By surpassing the boundary of DeFi, OpenDAO steps on a stage of the real world and aims to make the highest-volume traded stocks available to all DeFi enthusiasts. These include big tech like Facebook, Tesla and Apple, also adding the exposure to illiquid assets like real estate.
This goal is accomplished in two ways: first, OpenDAO came up with its original stable coin, whose value is based on real-world collateral transformed into a tradeable token. Second, by partnering with various individuals and investor groups, and by automating whenever possible, OpenDAO secures the presence of these off-chain assets on their on-chain platform.
What’s even more noteworthy, OPEN is one of the rare tokens fully entrusting the reins of its governance to the hands of the public. That means, once the token is acquired through the open exchange, its possessor has a chance to define its further fate. All users can exercise their voting rights and make a collective decision on which types of assets are to be taken on board in the next round of investment. This segregates OPEN token out of numerous market alternatives, making it an extremely liberal asset ready to hear the voice of investors.
Cash Box and OPEN staking
The challenge with the abovementioned scheme is the long-term stability of the liquid resources within the platform – especially when it concerns open decentralized exchanges based on the model of Uniswap.
To overcome this difficulty, OpenDAO came up with two solutions: Cash Box liquidity mining and OPEN staking. The first one of them, Cash Box, is storage where liquidity providers supply various stablecoins (e.g. USDC and USDT) that together serve as a back-up of real-world assets. Another one, OPEN staking, encourages the participants to participate in a yield farming program that brings generous API rewards of 13%-20%.
This all allowed creation of Open Market, a decentralized exchange facilitating the free swaps of digital assets for the real-world collateral. This platform gives an opportunity to earn high interest on assets that are projected to give a rise of up to 100x times.
These prospects altogether bring OpenDAO to open a new horizon of decentralized finance. Apart from being able to get possession of a community-governed token, users can also participate in a free exchange of assets on a democratized platform facilitating a direct swap between participants. OpenDAO created a new realm where DeFi and traditional finance live in close unity, and a long-lasting partnership between DeFi and traditional finance is finally achieved.