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Unveiling Ondo Finance: Bridging Traditional and Decentralized Finance

2024-04-11 11:56:25

Ondo Finance is a Coinbase project that brings unique financial solutions by combining aspects of traditional finance with decentralized finance. With this aim, the project has already launched a number of smart financial products and services.

The platform also recently launched its native token and was widely adopted by investors. 

This article explains Ondo, its unique approach to tokenizing assets, the significant role of the ONDO token within its ecosystem and how to buy ONDO tokens.

What Is Ondo?

Ondo Finance is a securities tokenization project that combines real-world assets (RWA) with blockchain technology. Its main goal is to make high-quality financial products and services available to everyone, not just big institutions.

Ondo believes that traditional markets and decentralized finance each have their share of shortcomings. On one hand, traditional markets suffer from limited accessibility and interoperability. 

On the other hand, DeFi, while innovative, is separated from the real economy and heavily relies on certain stablecoins.

Ondo Finance aims to overcome these limitations by fusing these two worlds, i.e., by turning real-world assets into blockchain-based tokens. For this purpose, the Ondo ecosystem relies on several blockchains, namely Ethereum, Solana, Aptos, Injective, Mantle, Polygon, and Sui. 

So far Ondo has introduced four main products:

  • OUSG: A blockchain-based representation of a fund that invests in short-term US government bonds.
  • OMMF: This is a tokenized BlackRock money market fund that offers people a safe place to invest easily accessible, cash-equivalent assets.
  • USDY: A yield-bearing alternative to traditional stablecoins aiming to provide stable and high-quality US dollar-denominated returns.
  • Flux Finance protocol: A protocol that helps in the use of blockchain-based securities to make it easier for these assets to be used in financial transactions.

How Does Ondo Work?

Ondo Finance creates and manages tokenized RWAs and services. This includes two main areas: First, there's the asset management side, which deals with creating and managing financial products based on blockchain. 

These products are designed to work similarly to traditional financial instruments but with the added benefits of blockchain technology, such as improved accessibility and efficiency. 

The second part is the technology side, which works on developing decentralized finance protocols to support and scale these financial products.

When someone wants to invest with Ondo, they first undergo a detailed KYC screening process. This process verifies the investor’s identity, reviews their financial and legal documents, and ensures compliance with anti-money laundering regulations and other legal requirements.

Furthermore, investing in certain Ondo products requires that a person meets strict criteria. Investors must possess specific financial knowledge and a certain level of wealth, including a high net worth and annual income.

This is to ensure that investors understand and can handle the risks of these investments.

What Is the ONDO Token?

ONDO is the governance token of Ondo Finance and its Flux Finance protocol, which ensures that the company's direction is guided by its user community. The token allows its owners to have a say in key platform operations, such as suggesting and voting on updates. 

Initially, the ONDO token was distributed to a large group of community members through a pre-sale. After being unlocked for trading, it quickly appeared on major cryptocurrency exchanges, including CoinEx

The ONDO Finance token has a total supply of 10 billion, with 1.38 billion already in circulation.

Several key factors influence the ONDO token price. These include how much people want to buy it, investors' overall feelings toward it, ONDO's historical performance, and changes in the crypto world.

However, ONDO’s unique financial solution also plays a big role in deciding its price since there is a growing interest in new financial technologies.

ONDO Roadmap

For the next two years, Ondo's plan is split into three main steps:

Phase I 

For this phase, Ondo Finance focuses on bringing more people to use their digital cash equivalents like USDY, OUSG, and OMMF. To do this, they're teaming up with blockchain networks (both Layer 1 and Layer 2) to introduce their tokens into more ecosystems. 

They're also making versions of their tokens that can either keep a steady value or increase in value over time to suit different needs. 

Ondo is improving its Ondo Bridge protocol for moving tokens between blockchains and the Ondo Converter for switching between token types. They're also working on spreading their tokens further by partnering with trading platforms to make their tokens more widely available and easy to use.

Phase II

Next, Ondo plans to start working with other types of publicly traded securities, not just cash equivalents. They're about to announce two big projects that will change how securities are brought onto blockchain networks by improving their trading ease. 

These steps are meant to facilitate the movement of many different securities onto the blockchain and their widespread use.

Phase III

Ondo aims to bring more RWAs and traditional financial services onto the blockchain. This could involve working with both centralized companies and decentralized networks to make financial services and products more efficient and accessible. 

They're committed to maintaining high standards in their future products and services as well.

How to Buy and Trade ONDO Tokens? 

CoinEx is a global cryptocurrency exchange trusted by over 5 million consumers globally, with 100% reserve. With over 900 tokens available, including ONDO, users may trade effortlessly. 

ONDO was listed on CoinEx on January 19, 2024, at an initial price of $0.2021 USD, marking an impressive overall change of +288.83%. This indicates significant growth potential in the token's value since its listing, although the price of ONDO tokens may have fluctuated.

To buy ONDO tokens on CoinEx, follow these instructions. 

  1. Sign Up for CoinEx: Start by creating an account with CoinEx.
  2. Add Funds to Your Account: Once your account is set up, log in and deposit funds supported by CoinEx.
  3. Go to the ONDO Token Page: Once your account has been funded, visit CoinEx's dedicated ONDO trading page. To find ONDO trading pairs on the spot trading page, use the search box and input the phrase "ONDO."
  4. Select Your Trading Pair: For trading ONDO, choose the ONDO/USDT pair to trade ONDO for USDT (Tether).
  5. Enter Your Trade Amount: Decide on the number of ONDO tokens you wish to buy and enter this amount. The trading interface will show the cost at the current market rate.
  6. Confirm and Execute Your Trade: After setting up everything, review your trade details. Once the details are verified, confirm and place your order to buy ONDO tokens.
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