OpenDAO Bridges Gap Between Real-World Assets and DeFi
DeFi has the potential to not only revolutionize how people around the globe exchange value and access financial services, but to also give those same people the opportunity to break free from the arbitrary financial restrictions that prevent them from seizing life-changing opportunities.
However, DeFi is only in its infancy, and we have yet to see the movement make a major impact on the global stage; the entire DeFi market deals almost exclusively with a niche of on-chain assets, which leaves a literal world of "real" assets out of the picture. Without these real world assets, the scale of DeFi and cryptocurrency will continue to pale in comparison to even a single company such as Apple or Facebook, not to mention the $73 trillion dollar stock market or the $217 trillion dollar real estate market.
The next logical step for DeFi and cryptocurrency is to envelop real world assets. OpenDAO is here to make this crucial step in tokenization a reality.
A lot of money has been made in risky DeFi endeavors the past few months, and hype is building substantially. However, the volatility of these small markets and possibility of bad actors has led to many losing money, as well. How would you like to lend against real-world assets in a decentralized, trust-minimized fashion, combining the relative stability of traditional markets with the more privacy-focused DeFi ecosystem?
OpenDAO can make this a reality.
DeFi has created a mechanism for raising and maintaining liquidity for global market interconnectivity. The OpenDAO team wants to use these innovative new technologies to give investors access to real estate, stocks, and other real-world markets that have traditionally been the stomping ground of wealthy people.
It could also attract many traditional investors to test the crypto waters if they could interact with these new markets in a way that is familiar and less chaotic than what crypto enthusiasts have become accustomed to.
OpenDAO Integrates DeFi With Real World Assets
The OpenDAO app beta gave people the opportunity to stake DAI against Australian real estate and earn $OPEN governance tokens.
Connecting real-world assets to on-chain ones is a complex process with many challenges, and the OpenDAO team has many years of experience and research behind their solution to these problems. A core concept of OpenDAO is Cash Boxes.
Watch this video to learn more about cashboxes.
The cash box is a pool of stable coins which is always available as collateral to real-world assets allowing holders of an on-chain asset representing a stock or real estate share to sell back to the pool. Cash boxes are funded by liquidity providers, and the individual on-chain assets will have attached to them their own protocols for managing the represented real-world asset.
Cash box liquidity providers can convert their Cash Box tokens back to shares, so why will they hold them? They will be getting discounted real-world assets which they are happy to hold for a time to gain exposure to these new markets we talked about. Liquidity providers earn fees from buyers and sellers, and they will receive the bulk of the $OPEN tokens reserved for community incentives.
Uniswap listing for the governance token $OPEN just took place 26th of November. The official contract address is 0x69e8b9528CABDA89fe846C67675B5D73d463a916.
You can read more about how the launch went on the OpenDAO Medium page. Post Public Token release Business and Tech strategy
Where can I find out more?
"What are OpenDAO cash boxes for?" written by Me on Publish0x
Subscribe to the YouTube Channel and watch some of their informational videos and developer talks! https://www.youtube.com/channel/UCv5O3ANjupSH_yJmdY4o59g
Official Twitter https://twitter.com/OpenDAOProtocol
Medium https://medium.com/opendao
Telegram Group https://t.me/OpenDAO
Read the whitepaper https://www.opendao.io/Whitepaper-OpenDAO.pdf
or the simplified litepaper https://www.opendao.io/Litepaper-OpenDAO.pdf