Ondo Finance announced launch cohort

Ondo Finance announced last Friday, December 3, through its Twitter account, its launch cohort of $100 million for Liquidity as a service (Las).

Image about Ondo Finance’s post on Twitter

“Ondo Finance and Fei Protocol have partnered with several cutting edge DeFi protocols to help them increase their decentralized currency liquidity. The Liquidity as a Service (“$Laa”) offering allows the protocols to phase out long-standing liquidity extraction campaigns, which many argue are unsustainable, costly and lead to unwanted volatility”, he said through an article published on the Medium platform.

According to the company, Fei’s initial commitment of $50 million to the program has now been matched with $50 million in partner commitments totaling $100 million to be rolled out into the program over the next several weeks. The first of these vaults, from Universal Market Access (UMA), Gro Protocol (GRO) and ShapeShift (FOX), was implemented yesterday, with NEAR (CERCA) imminent launch in the next few days. Several more partners will be announced soon. These vaults have deployed liquidity to new liquidity pools at Uniswap, establishing dollar-denominated liquidity for participants’ tokens.

About liquidity as a service

The company explained that Liquidity as a Service (“$Laa”) is an offering by Ondo and Fei to enable projects that issue tokens to increase liquidity in their native tokens on decentralized exchanges by providing liquidity themselves. With $Laa, a project can deposit its token in an Ondo liquidity vault with a flexible duration, and Fei will combine those deposits with an equivalent amount of FEI to form a liquidity pair.

Also read: Wall Street Games Token application “available on Google Play”

Advantages of Ondo

According to the company, Ondo offers several advantages for token issuers. With Ondo, token issuers earn trading commissions and rewards that reduce (or even negate) the risk of impermanent loss (IL) and cost of capital.

In his view, Ondo’s vaults represent granular building blocks upon which customizable liquidity solutions and return profiles can be built. With minor adjustments, Ondo vaults are suitable for facilitating direct listings, establishing the first liquidity for a token. Direct listings could eventually replace or supplement IDOs.

“The objective of Ondo is to build an infrastructure that allows to provide services to users in a largely automated, composable and customizable way”, he said.

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