OpenDAO is happy to announce that we are welcoming Algorand into our DeFi family! We’ve already begun the process for creating the $wAlgoO stable coin with wAlgo as collateral!
Algorand’s efforts to build open source software for an inclusive ecosystem have created a cascade of opportunity throughout the cryptospace and our team and community are beyond excited to be a part of it. We look forward to making the future happen together!
How do you benefit from the partnership? Read more below to find out!
What is Algorand?
Algorand’s platform was designed from the ground up to power complex applications that require speed, scale, finality, and security, while being cost-effective and precise. It utilizes a permissionless proof-of-stake protocol which seeks to deliver decentralization, scale, and security for all participants. Transactions are fast and low cost too! The strength of the protocol can be found in its three ‘pillars’:
Comprehensive smart contract capabilities enable DeFi solutions and dApps that can scale to billions of users, tens of millions of daily transactions, with negligible transaction fees
Algorand Standard Assets are standard blockchain assets with customizable options, directly in Layer-1
Secure transfers and immediate transaction settlement for multiparty transactions built in Layer-1
The native token on the Algorand blockchain is the Algo. All Algo holders can participate in all functionalities of the protocol, including participating in consensus by proposing and voting on blocks; this is all in proportion to their stake (how much Algo they have). Algo is notably the 67th largest coin by market cap, at the time of writing.
You can learn more at https://www.algorand.com/
What is OpenDAO?
OpenDAO (OPEN) serves as a bridge for real-world assets to cross over into the growing DeFi infrastructure. The goal is to bring more value into the space by providing exposure to real estate, stocks, and more… all in a uniquely permissionless and seamless manner.
Currently, the protocol is developing a suite of ‘flagship stablecoins’ [EGLDO, OCEANO, and DSDO are in development.] This will eventually culminate in a new stable coin backed by the world around you: starting with Bitcoin, Ethereum, and other crypto assets as collateral, but steadily moving to include more off-chain assets and on-chain assets as 2021 progresses.
User Benefits: Mint an $Algo backed Stablecoin
The process for using Algo as collateral to mint a dollar-pegged stablecoin ($wAlgoO) with OpenDAO is underway! But, what’s in it for the end user?
The golden question…
If you’re an Algo holder and you’re long on the Algorand Protocol, but want to free up some capital, ‘double down’ on Algo, or diversify your investments, the $wAlgoO stable coin was created with you in mind. The Algo hodler community can convert their Algo to wAlgo and then into the new stable coin. $wAlgoO minters will be able to easily convert their stablecoin to $USDC or similar for deployment elsewhere or will be able to add their newly minted stable coins to the soon-to-come wAlgoO/USDC pool and receive both $Algo and $OPEN as rewards for being a liquidity provider! The net result?
More utility for holders and increased scarcity as a result of removing $Algo from circulation.
Audits by OpenZeppelin are now finished, so we expect this process to take only a couple more weeks to complete; you can be sure we will keep you updated!
MORE DEVELOPMENTS TO COME…
That it’s for now, but knowledge is power — be sure to check the links below for more info! If you’d like to hear more of these developments or see even more articles like this, be sure to show us that you’re here! Be heard and slap that ‘clap’ button a few times!
Algorand Main Links
Main Site: https://www.algorand.com/
Algorand Community: https://community.algorand.org/
OpenDAO Main Links
White Paper: https://opendao.gitbook.io/whitepaper-v2/
Transparency Document: https://opendao.gitbook.io/transparency/