O-Ocean ODollar FAQ

You asked, we listened! Here are some answers to the most common questions, sourced from the Ocean community.

Hopefully this brief guide is enlightening!

• What is ODollar?
  ODollar is a 12 month (non-perpetual) stablecoin that tracks USD in which OCEAN is used as collateral. Think DAI but using OCEAN as collateral instead of ETH.

• What can you do with ODollar?
  You can swap ODollar to USDC on Balancer and then use it for any purpose — yield farming, buying more OCEAN, or anything else in DeFi. You can also supply liquidity on Balancer against USDC / ODollars and earn UMA rewards.
• Liquidity?
  Liquidity can be provided on Balancer against USDC. LPs get fees and a strong APY in the form of UMA rewards and in theory no impermanent loss as they are similar value assets (both stablecoins). BAL token rewards will also be coming soon.
• Why did it change from OceanO to ODollar?
  We (the OpenDAO team) changed it to ODollar for brand consistency alongside yDollar.
• Is there a minimum lockup period?
  No lockup. Can redeem minted tokens for deposited collateral at any time.
• Is there IL if I mint on ODollar?
  From just minting? No.
• What are the current APY Rewards?
  Balancer pool fees + UMA token rewards + Balancer token rewards (coming soon)
• What is the reward if I stake on ODollar?
  Depositing ODollar and USDC into the liquidity pool earns you a clip of the transaction fees from being a liquidity provider, on top of airdropped $UMA tokens and BAL tokens which are to be claimed.
• Will existing pools in the marketplace be updated to use ODollar instead?
  No, since ODollar tokens expire after 12 months (non-perpetual), and expiry would be problematic for pools that are perpetual.
• Can I only add ODollar as a single asset stake?
  It is suggested to supply your own USDC with ODollar when you add to the liquidity pool.
• Can I unstaked before 12months?
  Unstake at any time there is no lockup.
• Is there a way to calculate the projected weekly rewards without having the tokens?
  Bit tricky as there are a bunch of real time calcs that are price dependent, in fact we removed it as well. But you can use the APY figure as a reference. Note that is an estimate as well as it is a lagging number.
• If I provide liquidity, is there any liquidation risk?
  Liquidation happens in the case your deposited asset drops down in value. The “My Positions” tab should show your liquidation price.
• Will the Ocean team provide liquidity to the pool?
  Yes. The Ocean team has already done so.
• Is the current ODollar mint by OpenDao the same as OceanO that will be used in the Ocean Market?
  ODollar will not be used in Ocean Market
  Ocean Market is slated to use an OCEAN-backed perpetual stablecoin by the end of Q2. The name is not determined yet.
• Is there any risk to lose the tokens on OpenDAO? Can I withdraw it whenever I want?
  You can withdraw any time by paying down your debt.
• How does the Balancer pool get filled to swap ODollar to USDC?Thanks to users staking their tokens. Liquidity Providers that add to the pool earning swap fees, and are further incentivised by $UMA + $BAL airdrops.
• Arbitrage Opportunities
  How can someone take advantage and profit from arbitrage?https://medium.com/opendao/arbitrage-opportunities-on-the-ocean-o-dollar-and-maintenance-of-the-peg-3cfca498a76e
• What is the risk of ending up with ODollar at the end of expiry?
  None, your ODollars will simply lock $1 USD worth of OCEAN as of the expiry date. See the end portion of What’s the yDollar? How it Works: Visualized — ‘ChalkTalk’ with OpenDAO Founder — Moresh Kokane
• Liquidation Risk and Mitigation
  When does someone get liquidated? How does the liquidation process work?
  More info on that here:
  https://mbroome02.medium.com/uma-liquidations-what-to-know-b02db66a3b28
  https://docs.umaproject.org/synthetic-tokens/expiring-synthetic-tokens#liquidation-and-dispute
• Use cases in DeFi
  Lock OCEAN, mint ODollar, swap to USDC, deploy on AAVE, Compound or any other DeFi strategy that makes sense to you. After earning yield via DeFi, reverse the steps and unlock your OCEAN
  https://medium.com/opendao/arbitrage-opportunities-on-the-ocean-o-dollar-and-maintenance-of-the-peg-3cfca498a76e

Additional links:

Intro to the OpenDAO ODollar Minter -
https://medium.com/opendao/the-opendao-minter-203fa36cb78c

OpenDAO Main site — http://OpenDAO.io
ODollar Minter — http://ODollar.opendao.io

Any further questions, please visit the OceanO channel in the OpenDAO Discord — https://discord.gg/N37H2EDSZs