OpenDAO X UMA X Ren Protocol
Building the Yield Dollar Interface and USDO
We are proud and excited to officially announce what we’ve been building with both UMA and Ren Protocol!
Check out the new Yield Dollar interface at ydollar.opendao.io
For the past few months, we have been working closely with the amazing team at UMA (shout out to Clayton, Hart, David and Sean!) to build a new interface for the Yield Dollar (yDollar) which will eventually transition to the USDO stablecoin minter.
For a detailed explanation on why we‘re building on UMA, rather than our previous architecture, you can watch this video below:
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 out this 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! This means minters actually get paid to lever up on BTC or ETH.
We are rolling out this phase first because it allows us to get familiar with building on UMA. This will also allow us and our community to get familiar with the minting process and evolve the interface and functionality over time.
To mint your first yield dollar, head on over to ydollar.opendao.io!
REN PROTOCOL INTEGRATION
As part of this build, we have also been working closely with the Ren Protocol team (shout out to Taiyang, Michael and Noah!), to allow Bitcoin to be used as collateral in a full 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!
You can go to ydollar.opendao.io now to mint Yield Dollars with your BTC!
To find out more about our implementation with Ren, and what it means for OpenDAO going forward, watch the video below:
PHASE 2 (Single Asset USDO Stablecoin)
Phase 2 of our plan involves utilising UMA’s upcoming perpetual contracts (currently being audited) to build the first iteration of our USDO stablecoin on.
This allows us to mint 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.
We will be starting with 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 our roadmap for USDO in our whitepaper here.
We estimate users will be able to mint USDO with ETH and BTC in early Q1 2021!
PHASE 3 (Multi Asset USDO Stablecoin)
In phase 3 we will 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 we have already developed protocols which allow us to accept off-chain assets as collateral, such as the CashBox system. You can view a quick video on the CashBox below.
We anticipate that by Q3 2021, the multi asset USDO stablecoin will be ready for minting and be exchangeable for other stablecoins via various liquidity pools.
LINKS
yDollar Minting Interface
YD-ETH-MAR21 on Balancer — A 50/50 Pool with USDC
YD-BTC-MAR21 on Balancer — A 50/50 Pool with USDC
