OINDAO V3 Provides Unique Solutions to the Growing Crypto Industry’s DeFi Needs

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OIN Finance

5 min readDec 12, 2021

The OINDAO V3 with its multi-chain capabilities provides a unique set of solutions to retail users and businesses alike. Through a robust set of solutions that can solve many of the problems hampering the legitimization of businesses in the altcoin space and provide much-needed DeFi functions to the altcoin space’s retail base, we’re here to take the industry to the next level.

OINDAO V3 Functions

Launching soon, the OINDAO V3 brings with it a massive upgrade to the existing OINDAO platform in capabilities. Keeping to the core function of minting collateralized stablecoins, the update completes our goal of bringing a safe, stable platform that provides a versatile DeFi injection into any ecosystem.

The OINDAO is versatile enough to be able to deploy on most blockchain networks (layer-1, layer-2, and side-chains), as shown by the nUSDO launching on the NEAR Protocol (in private beta testing now)
Despite a multi-chain strategy, the design of the system supports isolated risk markets, meaning that a single collateral risk will not affect the stability of the stablecoins in other networks
Once OINDAO is deployed onto the network, the users of that network are able to collateralize their assets to mint their respective stablecoins (stNEAR for nUSDO). This provides a leveraging opportunity — NEAR hodlers can now collateralize their stNEAR tokens to mint nUSDO, which can then be used to purchase more NEAR, giving the hodler a leveraged exposure to NEAR tokens

There are brand-new features of the V3 however, that truly helps stabilize the platform and bring to life our value-propositions, specifically in tokenomics and the utility of the OIN token:

Governance — The OIN token will be used to govern the Stability Fee for all stablecoins. As we list more and more stablecoins, we will bridge the OIN token to the respective chains and enable the community in governing the Stability Fee rate that acts similarly to a central bank’s interest rates
Deflationary tokenomics — The Stability Fee will be collected in the stablecoin in question, and be used to repurchase the OIN token on the market in their respective exchanges (Ref Finance for NEAR), which is then burned. This enables the value derived from increasing protocol usage to be transferred to OIN token holders

And finally, updates to the Vault and liquidation mechanisms help provide the most stable stablecoin we possibly can:

Vaults — These are akin to accounts. Each vault being tied to a wallet address, can be liquidated on its own to bring the overall system collateralization ratio up by eliminating those that fall below the Minimum Collateralization Ratio (MCR)
Stability Pool — This is a separate pool that provides the funds to help liquidate vaults that fall below the MCR, while taking any profits there may be from the liquidation, as well as earning system staking rewards
Redistribution Mechanism — This redistributes the debt to all collateralization pool stakers if funds in the Stability Pool are exhausted, providing a failsafe for the OINDAO in liquidations

The liquidation mechanisms described above providers the following benefits:

Undercollateralized debt is immediately liquidated. This significantly improves liquidation efficiencies in comparison to other stablecoin protocols in the industry, translating to an optimized capital efficiencies
Instead of only a selected few with bots and capital reserve that can generate liquidation yields during liquidation events in most stablecoin protocols, the liquidation process on OINDAO is democratized such that all Stability Pool stakers can contribute and profit from liquidation

OINDAO Unlocks DeFi for the Altcoin Users

DeFi, stablecoins, and many great applications of crypto technology is prevalent within the overall industry, but is highly focused within the Ethereum space. With the most popular and used stablecoins all on the ERC20 standard (USDT, USDC, DAI), there are a limited number of options for the altcoin space. Doubly so if you’re thinking non-custodial stablecoins.

The OINDAO, being a multi-chain platform, is being recreated on our partner’s blockchains to unlock access to collateralized stablecoins for the altcoin community. Users on NEAR will soon be able to have a stablecoin native to the NEAR Protocol to transact with, and an easy leveraging opportunity.

With great many use cases planned, such as game-fi payments, immense yield-farming opportunities, online payment for real goods, and more, the OINDAO is bringing DeFi to more than just one isolated chain.

OINDAO Unlocks DeFi for the Altcoin Businesses

Blockchain projects are businesses at their core. They are employers with a team, have bills to pay, and operations to run. With stablecoins now on their chains natively, it will become easier than ever for altcoin projects to have stable cashflows and a way to transact that puts all stakeholders at ease as to their income/expenses and their value, tomorrow.

Their users will now also be able to hold onto their assets and use the platform. A fan of NEAR will now be able to still hold ownership of their NEAR token, while minting the nUSDO to purchase NFTs. This unlocks a significant amount of liquidity in the ecosystem to be used, as those that have been holding NEAR now have a method to use those coins without having to sell.

OINDAO is a Turnkey Solution for Businesses, Blockchain or Otherwise

All this comes in a simplified package, all wrapped up nicely within the OINDAO V3. Once a partnership is settled and a rough schedule determined, we set to work with the stakeholders in assuring that the OINDAO V3 is not only seamlessly integrated into their platform, but also secure through audits specific to that blockchain (e.g. EVM audit was completed, but Rust audit was conducted to ensure the port was flawless).

On the business aspect of the OINDAO, we start working on the use cases, exploring their ecosystem to see where and how the stablecoin can add value. This can be in obvious cases such as payment for goods, as a ‘parking’ asset between trades on exchanges, or as a settlement asset for transactions. With the help of the stakeholders, we ensure that the stablecoin serves as a catalyst to their ecosystem’s growth, from yield farming to finding new use cases, applications, and BD opportunities.

Upcoming OINDAO Public Release, and More!

The private beta test on NEAR is almost nearing its completion, we’re only a short sprint away from the full public release of the first OINDAO V3 stablecoin, the nUSDO. With it, we will have great yield-farming opportunities at launch to celebrate and provide immediate use case for the stablecoin, and to give back to the community that has been with us throughout our journey.

We also have a great pipeline of partnerships, use cases, and other network deployment that will fill out the pieces of a full and thriving ecosystem attached to the OINDAO, with some exciting developments to OIN Finance in general.

Thank you for being with us on this journey, and we look forward to seeing you on the OINDAO.

ABOUT OIN FINANCE

OIN is a decentralized stablecoin issuance and trading platform. With a robust set of features such as single-vault liquidations and own-brand-labelled stablecoins (e.g. USDO for OIN), we bring the best stablecoin solutions for all, including our layer-1 partners.