OpenDAO Builds New Yield Dollar Interface on Top of UMA, Accepts BTC as Collateral

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PRESS RELEASE. OpenDAO is proud and pleased to announce that it is one of the first DeFi projects to participate in the UMA’s dapp mining program.

Check out the new Yield Dollar interface at ydollar.opendao.io

Over the past few months, OpenDAO has worked closely with the UMA team to create a new interface for the Yield Dollar (yDollar) as part of UMA’s dapp mining initiative.

The goal is to create an interface that is more accessible and intuitive to use while leveraging the robust contracts drawn up by UMA.

The yield dollar will be a kind of forerunner of the USDO, OpenDAO’s multi-collateral backed stablecoin, which will also be based on UMA.

PHASE 1 (Yield Dollar)

In phase 1 a new interface for the existing Yield Dollar (yDollar) product from UMA will be created. If you are unfamiliar with the yield dollar, you can check out this article by Clayton at the UMA.

As a quick overview, the Yield Dollar is a stable synthetic token that is minted by locking ETH as security. The difference between the current iteration of the Return Dollar and other stables is that there is a rolling 3 month expiration. From that point on, it can be repaid at the exact time it expires for USD 1 of the collateral assets.

In fact, the yield dollar is a fixed rate loan with a fixed term.

Note: Due to user demand for yDollars purchase, it is currently trading at a premium, thereby giving the Minter the equivalent of a negative interest loan! Currently this means that participants are actually making money by minting yDollars.

OpenDAO first introduces this phase in order to familiarize itself with the structure on UMA. This allows both the UMA and OpenDAO communities to become familiar with the coin process and to evolve the user interface and functionality over time.

To mint your first yield dollar, go to ydollar.opendao.io

Integration of the REN protocol

As part of this build, the team also worked closely with the Ren Protocol team to enable Bitcoin to be improperly used as collateral for minting the return dollar as well.

By implementing RenVM, Bitcoin holders can now use their BTC as collateral for minting the Return Dollar and ultimately the USDO!

This allows those who have long been BTC to mint a yield dollar with their BTC, convert it to USDC, or add liquidity to the Y-Dollar / USDC pool to earn rewards and effectively generate a return while doing yours Keep BTC.

You can now go to ydollar.opendao.io to mint Yield Dollars with your BTC!

PHASE 2 (Single Asset USDO Stablecoin)

In Phase 2, UMA’s upcoming perpetual contracts (currently under review) will be used to create the first iteration of OpenDAO’s USDO stablecoin.

This enables a stablecoin to be minted that does not expire like the yield dollar and gives it properties that are comparable to other stables on the market.

While the USDO will ultimately be backed by a basket of collateral both in and out of the chain, the first iteration will be collateral for individual assets in the chain.

The first collateral is ETH and BTC (via renBTC) as on-chain collateral before including other asset types including off-chain assets such as stocks and real estate in Phase 3.

For more information on the USDO roadmap, see the whitepaper here.

It is estimated that users will be able to mint USDO with ETH and BTC early in the first quarter of 2021!

PHASE 3 (Multi Asset USDO Stablecoin)

In Phase 3, OpenDAO intends to realize the ultimate form of USDO – a global stable coin backed by a wide variety of productive assets ranging from crypto to real world assets like listed stocks and real estate.

So far, they have already developed protocols that allow off-chain assets to be accepted as collateral, such as the CashBox system.

OpenDAO assumes that the USDO stablecoin with multiple assets can be minted by the third quarter of 2021 and can be exchanged for other stablecoins via various liquidity pools.

Relevant links:

OpenDAO website: https://www.opendao.io
Telegram: https://www.t.me/opendao
Twitter: https://www.twitter.com/opendaoprotocol
Y Dollar Minter: http://ydollar.opendao.io/

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