How OINDAO is different from MakerDAO
OIN Finance is a cross-chain layer 2 infrastructure considered a blessing for all blockchain assets. It aims to leverage the growing DeFi space with its solutions and product repository. The OINDAO enables users to leverage their assets to create their own stablecoin allowing for new uses and incentive distributions.
STP Network formally announced its partnership with OIN Finance and the STPT token was officially launched on the OINDAO platform last year in December. It became the first ecological token supported by OINDAO. The holders of the token can use the OIN DAO platform to leverage USTP which is soft pegged to the dollar. Frontier also partnered with OIN Finance to bring its token FRONT to the ecosystem. Frontier aims to make DeFi more accessible to newbies in the crypto world. With such collaborations, it will empower them with better tools to manage finances and earn profits. After locking the FRONT tokens into the OINDAO smart contract users can mint USDF1 tokens and see the position of collateral ratio, liquidity point, and even stability fee.
The OIN token is the native token of the OIN ecosystem which circulated in the OINDAO as collateral rewards, governance as well as clearing compensation. The token also will be the underlying infrastructure in the OIN lending platform. The OIN stablecoin USDO is regarded as the first decentralized stablecoin.
How does it work?
The initial collateralization rate for the users has been set at 300% by the system. If the rate hits 180% then the clearing mechanism will be automatically triggered. The users of the platform can deposit their USDO into the OIN-Swap or Lend pool to earn rewards from liquidity mining and staking.
If the collateralization rate comes down to 180%, the OINDAO clears the Collateralized debt position. Compared to a centralized exchange, here a clearing request can be put across by anyone providing the incentive to buy the dips attracting more and more players. When the market crashes and the system fails, it will issue new OINs’. The funds so gotten from the sale will then be used to burn USDO to maintain the peg. But if this does not suffice and encompass the systemic risk, the system will shut down and the assets will be returned to the owner. The USDO holders can also submit a request to withdraw at any time. When this happens the contract will burn their USDOs and give them the tokens back.
50% of the aggregate OIN tokens will be generated by liquidity mining and staking. The OIN tokens that are minted by staking will be generated from the USDO collateral pools in the OINDAO.
Advantages of OINDAO over Maker DAO
Over traditional models, DAO involves a set of people who interact with each other making it a self-enforcing open-source protocol. When the network is kept safe and other tasks are performed, the users are rewarded with native network tokens. The blockchain and smart contracts allow for the reduction of transaction costs with better transparency. This way the protocols are able to align the interest of all stakeholders by the consensus rules related to the native token. The members of the DAO are not bound by any legal entity nor have they entered any formal legalized contracts. They are also motivated by the incentives tied to the network tokens.
Hence they are open-source, transparent, and theoretically incorruptible. All the transactions of the organization are effectively placed and recorded on a blockchain. Proposals are the primary way of making decisions within the DAO. The proposals are then voted for by a majority consensus of the network actors.
The MakerDAO is by far one of the most popular DAO protocols in the DeFi space. It allows the users to lend and borrow through their decentralized system without the need for a middleman. Their currency token being a part of the Ethereum blockchain cannot be mined. Despite several advantages, OINDAO still stands way ahead of it carrying some advantages over it.
OIN’s biggest advantage over MakerDAO is its persistent efforts to collaborate with the industry. As we saw earlier, its collaboration with Frontier and STP network has been a strategic move towards leveraging earning opportunities, it also recently announced several formal partnerships. Fire Protocol and OIN came together recently to raise the productivity and action of staking activity. Fire protocol through its cross-chain wrapping services will allow OIN to move its assets to the Huobi ecosystem and render a single point functionality for all the operations. OIN also made an official announcement on its Twitter handle which has received wonderful responses from the community!
https://twitter.com/FinanceOin/status/1362429304366325761
It also partnered with Dash for an effective and optimized stablecoin solution which will augment the crypto payment space big time.
It has also branched out from the regular towards NFT digital collectibles with its high-profile collaboration with Terra Virtua. The new partnership entails safe and secure blockchain transitions in order to provide an immersive collectible platform for the users.
Summary of why OIN DAO is ideal
The OIN blockchain’s DAO allows projects of all sizes to mint their own branded stablecoins. It also serves as a customizable staking pool that allows the user to swap for their favorite altcoin in order to increase their holdings. Unlike MakerDAO, OINDAO makes it possible with its easy solutions, and with more products on the anvil, it will be a reality soon.
Since OINDAO is a stablecoin and staking derivatives issuance platform it is different from MakerDAO, because it is specially designed for all Altcoins lending support for projects of all sizes. The Maker DAO has a collateralized derivative contract, giving several iterations and steps which could be extremely confusing for the trader.
OINDAO also allows for price volatility and a low risk of liquidation compared to Maker DAO. The collateral management contract utilizes a range of pre-placed limit orders to liquidate the collateral in extreme market volatility which goes a long way in mitigating risks.
OIN excels over its competition because it gives a 360-degree solution to all problems in DeFi. It is continuously building towards bettering its ecosystem and offerings for its community.
For all the recent updates and progress, connect with OIN Finance and become a part of our community at:
