Introducing Anchor from OPEN
BUSD In. BUSD Out. Stability Up. All on Binance Smart Chain with OpenDAO
USDO is stable. Really stable. Now, it’s time to drop the anchor.
If you hold BUSD, want to prepare for any upcoming bearishness, or HATE impermanent loss…
OpenDAO’s ANCHOR is FOR YOU!
CONTENTS
- SUMMARY
- TL;DR
- SPECIAL
SUMMARY
USDO is the flagship product built on the OPEN protocol. The DAO’s mandate is to grow its liquidity and ensure it remains at peg.
To that end, it is important that USDO can always be swapped with minimal slippage to another stable on demand.
Since we originated on BSC, we have built a pair with BUSD. And since Uniswap v2 style AMMs can lead to significant slippage, we have had our own high-capital-efficiency low-slippage AMM built. At a very high level, it works like Curve, but can support dissimilar assets as well.
USDO peg has been steady and liquidity is growing slowly upwards.
To further facilitate the growth of USDO as a stable coin, we are introducing a new mechanism by which users can deposit stable coins which act as an active counterparty to USDO and earn a return while doing so.
This new stablecoin mechanism is called “Anchor”
The process beneath the hood is as follows:
- User deposits BUSD
- A portion of the BUSD is automatically sold for USDO, ratio dependent on the composition of USDO BUSD in the Omnitrade LP at the time
- The BUSD + USDO is added as LP to Omnitrade
- The LP is the staked in one of the farms that incentivize it, and then set for auto-compounding.
- The process goes through the same steps in reverse when someone wants to exit…However from an end user perspective they will simply just deposit BUSD and withdraw more BUSD back when they wish.
Of course, we simplified this. We have created a zap that shrink wraps all of these steps into one single step for the user.
Investors deploying this strategy should generate anywhere from 20–30% returns on stable coins.
What’s the catch?
Though we are spared from the pitfalls of impermanent loss, as with any endeavor, there is some risk.
Potential risks here come in the form of USDO losing its peg, or the LPs taking a hit, but participants get amply rewarded to shoulder said risk.
As liquidity grows, and as we continue incorporate various security measures, we expect this risk to steadily decline.
TL;DR
OpenDAO’s new Anchor platform is here! Under this banner, BUSD staking will be enabled to further fortify the USDO ecosystem!
Take advantage by getting a high APY on stablecoins with ZERO impermanent loss!
What are you waiting for?
SPECIAL
Hey, before you go…
Thank you for reading, and…
SMASH THAT CLAP BUTTON ON YOUR LEFT A FEW TIMES!
