OINDAO: Customizable Stable Coin Issuance on NEAR Protocol

1618981494

OIN Finance recently announced grant support from the NEAR Foundation to natively build and launch OINDAO on NEAR Protocol. As a home for stable coin issuance, and a scalable platform for grounding the next-generation of DeFi applications, OIN is well-positioned to grow into the fast emerging crypto-verse on NEAR Protocol and support the rapid development of Open Financial applications! 

Introducing OIN Finance:

On a macro level, OIN Finance provides the NEAR Ecosystem with the opportunity to optimize the flow of assets and value into and between projects. Value from one Altcoin can be collateralized and issued in the form of a stablecoin, for use in another application.

OIN Finance has been built to accelerate the advent of DeFi (decentralized finance). As a platform, it consists of two key products that allow existing altcoins to ‘plug into’ the world of stablecoins, derivatives and token swaps, for use across applications on NEAR and any other L1 Chain bridged with NEAR. 

OINDAO, the first core product of OIN Finance, is described as a “A stablecoin and staking derivatives issuance platform. Different from MakerDAO, OINDAO is specially designed for Altcoins.” 

In parallel, OIN Swap is the second product of OIN Finance that is currently being built. It is described as “A stablecoin decentralized exchange for the staking derivatives on OINDAO and other stablecoins.”

Together, these two products provide a fundamental base-layer for allowing any existing altcoin to integrate itself with the emerging world of DeFi tools and products. Unlike existing solutions such as MakerDAO, that control which projects can participate in the issuance of stablecoins, the collateralization of assets, and the swapping of tokens, OIN Finance puts accessibility first: 

“MakerDAO, and other DeFi platforms like Compound, also act as gatekeepers in electing which projects are selected to become part of their pools, thereby establishing a large barrier of entry for the majority of projects. OIN is able to solve this problem and build a greater DeFi ecosystem, centered upon inclusion and permissionless engagement.”

OINDAO on NEAR: What Does It Mean? 

OINDAO is going to officially launch as a native NEAR Solution. That means, first and foremost, that NEAR will be able to be used as collateral for a ‘native NEAR-backed’ stable coin. As the OIN Team explains: 

“A stablecoin provides an excellent method to park money during trading, or to use as a base currency. A NEAR-backed Stablecoin acts as the base currency in the NEAR ecosystem, helping the NEAR community to hedge against volatility.”

Beyond $NEAR, OIN Finance is built to integrate any existing altcoin onto the platform – meaning any other token in the NEAR Ecosystem can also be collateralized to issue their own stable coin. Once issued, these stablecoins can be used for the full suite of opportunities offered by the world of DeFi: 

“They will also be able to utilize the stablecoins for ecosystem-specific utilities, as leverage to buy more tokens, or even to swap for other stablecoins such as USDC and DAI.”

As DeFi and open finance  continue to mature, unlocking and maximizing the flow of value between dapps and protocols is a crucial requirement for supporting a thriving ecosystem of open financial applications. OIN Finance, with its two core products will support and expedite the future development of DeFi on NEAR Protocol. 

There are two notable long-term benefits that OIN Finance brings to NEAR. The first relates to driving scarcity around the $NEAR Token, while the second has to do with unlocking new value across projects on the protocol: 

Driving $NEAR Scarcity: 

First, in virtue of using NEAR as collateral for a native-NEAR stablecoin that can then be utilized across DeFi projects in the ecosystem, more NEAR can be locked up over time as more stablecoins are required for different applications. As OIN explains: 

“With more ecosystem-specific utilities behind a NEAR-backed stablecoin, more NEAR-backed stablecoins can be minted. The increasing amount of locked liquidity drives the price of NEAR up, creating a closed value loop for NEAR’s token economy.”

Hence, in the long-term, a $NEAR collateralized stable coin will create positive network effects and feedback loops for $NEAR as more projects launch in the ecosystem and more stablecoins are required for participating in different applications. 

Unlocking and Streamlining Value on NEAR Protocol: 

Second, OINDAO is built to support ‘basket-yield farming’ of projects bridged to, or on top of NEAR Protocol. This means that a user can stake NEAR on OINDAO, and yield up to 20 different tokens. The smart contract executes this operation independently, thereby allowing a single user to stake one time, and simultaneously yield from many different projects. As OIN explains: 

“OINDAO’s smart contract supports multi-coin farming functionality for up to 20 different tokens. This support will create synergy between tokens on or bridged to NEAR protocol, providing a linkage between projects in the NEAR ecosystem. This means users who stake NEAR will have the opportunity to farm 20 different projects’ tokens in the NEAR ecosystem.”

A Financial Revolution on NEAR Protocol: 

OIN Finance is a huge step in the advent of a financial revolution, a global infrastructure inversion and the launch of an open-financial ecosystem on NEAR Protocol. With stablecoin issuance of any altcoin on NEAR, and built in functionality and services embedded on a smart contract level, value has the capacity to flow more efficiently between applications on NEAR, while also increasing scarcity in the underlying locked asset. Ultimately, OINDAO’s launch on NEAR helps expedite the development of a new world of inclusive and accessible finance.  

For more information about OIN Finance check out their telegram or follow them on twitter. For more documentation on OIN Finance see: 

Website: https://oin.finance/

Gitbook: https://oin-finance.gitbook.io/925/

Rewards: https://oin-finance.gitbook.io/925/reward

Medium Blog: https://medium.com/oin-finance

Use Cases: https://oin-finance.gitbook.io/925/usecases