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OpenDAO Governance Token OPEN Will Launch in DeFi Bull Market

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The launch of OPEN tokens on November 26 may be in time for investors. Moreover, there are specific fundamentals that may support prices. 

In less than a week, OPEN, the governance tokens of the OpenDAO protocol, will launch as per an update on Nov 12. The release will allow users to purchase the ERC-20 token from Uniswap and Cash Box.

Uniswap’s liquidity will be provided by Cashbox Liquidity Providers (LPs). Those with allocation will receive tokens 24 hours before the official listing.

DeFi’s Value Proposition

Decentralized Finance (DeFi) is currently on an uptrend. Backing the stellar performance of the sub-sector’s tokens are the value proposition presented by some of Ethereum’s leading protocols. A BTC Peers report shows that DeFi is transforming online businesses.

Broadly, DeFi encompasses lending, derivatives, insurance, swapping, and DEXes. Currently, a big part of assets under management by open finance dApps are locked up and managed by lending dApps. According to trackers, Maker is the most dominant dApp, locking over $2.4 billion worth of assets.

Despite the potential of DeFi, its upside is capped. Liquidity is drawn solely from within the Ethereum ecosystem. Its market cap is over $57 billion at the time of writing. Its native currency ETH is now trading at over $500, adding 201 percent year-to-date.

The success of ETH prices has a direct effect on DeFi tokens. Their positive correlation means tokens of protocols benefit as the tide rises.

OPEN Governance Token Launching on November 26

Therefore, the launch of OPEN tokens on Nov 26 may be timely for investors. Beyond that, there are specific fundamentals that may support prices.

One of them is their mission. OpenDAO has the infrastructure ready to bridge real-world assets to the cryptoverse. In their protocol, valuable and physical assets like shares, real estate, invoices, and others can be collateral for loans and for earning OPEN tokens.

The tokenization of real-world assets like Tesla and Facebook stocks, or prime real estate properties enable fractional ownership therefore making them liquid.

The Cashbox Bridge

The project’s lynchpin is the Cash Box. It not only acts as a linkage but evolves projects’ crowdfunding. Cash Box is where an asset’s fair price can be gauged. This way, a pricing mechanism, an order book, that is purely decentralized and trustless emerges. The Cash Box is where users can pool liquid stablecoins (cash) which in turn acts as a perpetual counterparty for a real-world asset funded by Liquidity Providers (LPs).

Through the Cashbox, OpenDAO forecasts the DeFi’s Total Value Locked (TVL) to increase a hundred folds. It shall improve the sector whose operations, they say, resemble a casino. With more liquidity, there are more opportunities for investors.

There are several mechanisms used by the protocol to recover funds in case the borrower defaults. If the collateral is online, a sell order can be triggered via APIs for cash that’s then reimbursed to LPs depending on their share amounts.

On the other hand, real estate and other physical assets can be sold by an approved Special Purpose Vehicle (SPV) who owns and tokenizes the asset. Tokens are then sold to LPs using DAI. This requires the disclosure of personal information.

OpenDAO Incentives

Funds recovered are distributed to LPs. Fractional owners can stake their cash box tokens and earn OPEN rewards, and even borrow loans by presenting their tokens to the oUSD (OpenDAO’s stablecoin backed by physical assets) minter, or the OTL.

Besides owning the underlying asset, LPs earn trading fees. Whenever they stake their Cash Box tokens, they receive OPEN governance tokens as an incentive for liquidity provision. Lenders of OpenDAO’s OPM will also earn OPEN tokens from Nov 26.

OpenDAO has acquired a property in Melbourne, Australia, and tokenized its shares. Purchase of the Australian Real Estate Investment Trust (AREIT) is ongoing. The launch of OPEN governance tokens on Nov 26 via Cashbox and Uniswap could therefore provide an opportunity for investors to take control of a protocol aiming to link real-world assets to the cryptoverse in a bullish DeFi market.

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Libra Association Taps Saumya Bhavsar as General Counsel for Payments Subsidiary

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The Libra Association, the organization developing the Facebook-backed cryptocurrency project libra, has hired a former banking regulator and industry veteran as general counsel for its payments subsidiary.

The hire, Saumya Bhavsar, will assist Libra Networks in “launching and managing a compliant payment system” the Swiss-based association said Wednesday. That could be crucial for a project that faces regulatory headwinds at seemingly every turn.

Bhavsar will be calling upon 25 years in banking regulation across the public and private sector. She was a senior attorney at the U.S. national banking regulator the Office of the Comptroller of the Currency in the late 90’s and early 00’s.

She then pivoted to private sector regulatory roles at Euroclear, UBS and Credit Suisse, her LinkedIn profile shows. Bhavsar spent the most recent three years at Credit Suisse.



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VanEck Launches Bitcoin-backed ETP in Germany

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VanEck has pushed out of the US into the European markets and, with favorable regulations, it expects to have a better embrace in the region where similar products are already available.

Investment management firm VanEck has successfully launched a bitcoin-backed Exchange Traded Product known as an Exchange Traded Note (ETN) on the Deutsche Borse Xetra exchange. According to a report by Funds Europe, the move by VanEck to launch the exchange-traded product (ETP) models that of other European Exchange Traded Fund Issuers who had made similar moves in the past.

According to the Funds Europe report, the VanEck ETP Bitcoin ETN has a total expense ratio of 2% and it will allow investors to gain exposure to Bitcoin (BTC) without having to purchase the premier digital currency themselves. “Today @vaneck_eu launched a #Bitcoin ETN. The ETN is physically-backed by Bitcoin and listed on Deutsche Böerse Xetra. Launching a Bitcoin ETP was a top priority for VanEck. We succeeded! VanEck hopes to serve many in Europe and Asia!” Gabor Gurbacs, VanEck’s digital asset strategist/director revealed in a tweet.

Gurbacs noted that the bitcoin-backed ETN is 100% physically backed meaning that any ETN invested in by an investor will be used to purchase the equivalent amount of Bitcoin. With professionally managed offerings, Gurbacs affirmed that the company’s ETN features transparent pricing with reliable investor protections.

The custody for the Bitcoins purchased through the VanEck ETP services will be offered by Liechtenstein-based crypto custodian Bank Frick. Frick will provide the Cold storage options for any deposited Bitcoin.

VanEck and Its Way to Bitcoin-Backed ETP Approval

The desire by VanEck to launch a bitcoin-backed ETP dates back to a few years ago when it made several attempts to launch the product in the US.

“Bringing to market a physical, fully-backed major exchange-listed bitcoin ETP was a top priority for our firm,” Gurbacs was quoted as saying. The United States Securities and Exchange Commission (SEC) has wielded its strong-arm into denying the VanEck the privilege of rolling out the product through a delay of crucial meetings and events where the decision to approve the application was to be made.

The haul has been a long one for VanEck. And the limited version of a Bitcoin exchange-traded fund which it launched as reported by Coinspeaker back in September 2019 has not seen so much success as it was only able to issue just 4 Bitcoins upon launch.

VanEck has pushed out of America into the European markets and with favorable regulations, it expects to have a better soft landing and embrace in Germany and the rest of Europe where similar products are already on offer.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.





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US Intelligence Chief Raises Concerns With SEC Over China’s Crypto Dominance: Report

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U.S. intelligence chief John Ratcliffe was reportedly seeking clearer regulation around digital currency.



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