We’re delighted to announce that OIN Finance will be deploying on Harmony, to create a ONE-backed or ONE-denominated stablecoin.
A ONE-backed stablecoin is an important achievement for Harmony, as this helps us grow our Defi ecosystem and helps us establish an important Defi primitive that can be used in all other Defi protocols. Let me explain.
The Harmony Defi Lego Stack
One aim of Decentralized Finance, or Defi, is to mimic to some degree the centralized finance world. In that world, the span of financial services include:
- Borrowing/Lending (fixed APR, variable interest APR)
- Savings accounts with APR
- Derivative markets
- Synthetic assets
These are just some of the financial services that one can expect from any financial system. Additionally, it can get much more sophisticated and complicated.
The basics of any Defi system are typically called “Defi Primitives” — these are kind of like the base layer of a lego set, upon which you can build the structure.
A key Defi primitive is the stablecoin. And now Harmony will have one collateralized or “backed by” the ONE token.
Stablecoins that many have heard of is USDT, USDC, Dai and others. Harmony is actively working with established stablecoin issuers to natively support Harmony.
A key Defi primitive is the stablecoin. And now Harmony will have a Stablecoin collateralized or “backed by” the ONE token.
With OIN Finance, the stablecoin on Harmony will be collateralized by $ONE.
The product to be built on Harmony is OINDAO, which is a decentralized stablecoin issuance platform that was previously launched on Ethereum. While MakerDao allows only mainstream assets to be used as collateral to issue DAI, OINDAO allows projects to issue brand labeled stablecoins that are collateralized by their own tokens. With planned off-ramps and use cases such as swapping for other mainstream stablecoins, adding leverage, hedging, lending, and a plethora of ecosystem-specific utilities, the possibilities are endless with OINDAO.
MakerDAO, and other DeFi platforms like Compound, also act as gatekeepers in electing which projects are selected to become part of their pools, thereby establishing a large barrier of entry for the majority of projects. OIN is able to solve this problem and build a greater DeFi ecosystem, centered upon inclusion and permissionless engagement.
OIN’s vision is to provide DeFi functionalities to all crypto projects, large and small. Users will be able to unlock liquidity of their favorite assets while HODLing them. They will also be able to utilize the stablecoins for ecosystem-specific utilities, as leverage to buy more tokens, or even to swap for other stablecoins such as USDC and DAI.
How Can OIN Benefit the Harmony ecosystem? What Does this Mean for the Harmony Community?
Hedge against volatility
A volatile medium of exchange can compromise users’ purchasing power. A stablecoin provides an excellent method to park money during trading, or to use as a base currency. A ONE-backed stablecoin acts as the base currency in the ONE ecosystem, helping the ONE community to hedge against volatility.
Encourage the mainstream adoption
A ONE-backed stablecoin will encourage the mainstream adoption of ONE ecosystem projects. Most blockchain projects have the vision to change something in the real world. ONE-backed stablecoins create an additional abstraction layer for mainstream users, who will be able to interact with ONE-backed stablecoins in a similar manner to fiat — without having to worry about the underlying volatility of the crypto asset.
Driving $ONE Scarcity
With more ecosystem-specific utilities behind a ONE-backed stablecoin, more ONE-backed stablecoins can be minted. The increasing amount of locked liquidity reduces the circulating supply of ONE, creating a closed value loop for ONE’s token economy.
Unlocking and Streamlining Value on ONE Protocol
OINDAO’s smart contract supports multi-coin farming functionality for up to 20 different tokens. This support will create synergy between tokens on or bridged to ONE protocol, providing a linkage between projects in the ONE ecosystem. This means users who stake ONE will have the opportunity to farm 20 different projects’ tokens in the ONE ecosystem.
Aligned on Cross-chain
OINDAO and Harmony are aligned on another important point: our vision of the future is a world of many thriving communities. In that world, each chain will have its own ecosystem and strengths and weaknesses. Harmony wants to be a meaningful actor and add value to users across all chains. But the way to get there is to a chain that excels in interoperability.
Starting with Ethereum, and gradually expanding to other popular ecosystems, OIN is on track to build a greater DeFi ecosystem and become a one-stop shop for cross-chain stablecoin issuance, trading, and implementation.
AMA with the OIN Finance Team
Be sure to follow us on Telegram, Twitter, Reddit for upcoming dates for an AMA with the OIN Finance team building on Harmony.
Harmony is a sharding protocol with a trustless Ethereum bridge. Harmony developers can use Ethereum tooling such as Solidity and Ethers.js. Users can also seamlessly swap Harmony and Ethereum assets. Harmony is able to achieve 2-second finality for fast transactions and is able to support 1000 delegating stakers for secure shards. Similar to layer 2 protocols, Harmony is now fully interoperable with the Ethereum ecosystem.
OIN is a decentralized stablecoin issuance and trading platform. While MakerDao allows only mainstream assets to be used as collateral to issue DAI, OIN DAO allows projects, large or small, to issue their own brand labeled synthetic assets that are collateralized by their own coins; in essence, any projects can mint their own stablecoins to participate in the greater DeFi ecosystem. Starting with Ethereum, and gradually expanding to other popular ecosystems such as Polkadot, Avalanche, and ONE, OIN is on track to become a one-stop shop for cross-chain stablecoin issuance, trading, and implementation.
With planned off-ramps and use cases such as swapping for other mainstream stablecoins, adding leverage, hedging, lending, and a plethora of ecosystem-specific utility, OIN is expanding DeFi to cover all of the crypto space.
For all the recent updates and progress, connect with OIN Finance and become a part of our community at: