You’re probably too familiar with MakerDAO. A decentralized stablecoin issuance protocol. However, it only mortgages large-cap assets like ETH. This somewhat limits the development of the DeFi ecosystem.
Therefore, OIN Finance was born with the purpose of solving this problem. OIN is not only for mortgaging ETH, BTC but also for mortgaging smaller-cap Altcoins to create a large supply of stablecoins to support the DeFi ecosystem, NFTs, ..
OIN is a cross-chain protocol, works on many networks such as: Ethereum, Polkadot, Ontology, Avalanche, etc. to provide maximum support for users.
OIN Finance’s goals:
- Become the gateway to DeFi.
- Promoting the DeFi industry.
- Develop DeFi’s potential to its fullest extent.
Why OIN? – Why do projects choose OIN Finance?
- It only takes about 2 weeks to list and mint your ERC20 stablecoin after the Parameters (eg mortgage rate, ,,,) are decided by the listing project
- Save time for the development team. OIN smart contracts, in this case OINStake, are audited and trusted by many trusted partners like Avalanche, Dash, and Matic.
- Technical support for setting key risk parameters for smart contracts
- Technical support to get your own branded stablecoins swapping with major stablecoins on Curve and Balancer to unlock liquidity for your assets.
Products of OIN Finance
The product built on Harmony is OINDAO, which is a decentralized stablecoin issuance platform that was previously launched on Ethereum. While MakerDao only allows mainstream assets to be used as collateral to issue DAI, OINDAO allows projects to issue private-branded stablecoins like USD01, USTP, USDF1, mUSD collateralized with their own tokens. With planned price cuts and use cases like swaps for other mainstream stablecoins, more leverage, hedging, lending, and lots of ecosystem-specific utilities, OINDAO possibilities are endless.
MakerDAO, and other DeFi platforms like Compound, also act as gatekeepers in voting which projects are selected to be part of their team, thus establishing a major barrier to entry for the part. large projects. OIN can solve this problem and build a larger DeFi ecosystem that focuses on permissionless inclusion and participation.
OIN’s vision is to provide DeFi functions for all crypto projects, large and small. Users will be able to unlock the liquidity of their favorite assets while HODLing them. They will also be able to use the stablecoin for ecosystem-specific utilities, as leverage to buy more tokens, or even to swap for other stablecoins like USDC and DAI.
OINDAO V1 – Stablecoin model with fixed token ratio
The stable coin model with a fixed token ratio is the simplest stable coin model. The model maintains a permanently fixed ratio of project tokens to stable coins (e.g. OIN tokens are 1 USDO), which means that the number of stable coins generated will not be affected by any project tokens. tell how its price fluctuates. This model has two advantages:
- First, since the total number of stablecoins issued is fixed, it is easy to calculate the value of the underlying token needed to maintain the stablecoin price at US$1, which is beneficial for maintains its status as a stable coin and protects the value of users’ assets.
- Second, during stablecoin usage, such as voting or mining, some project parties prefer fixed-rate stablecoins. The downside of this model is that the ratio of the number of stablecoins to the token is fixed, and so as the price of the underlying token increases, there will be capital inefficiencies as over-collateralization can overshoot. project wishes.
OINDAO V2 – Stablecoin model with variable token ratio
The stablecoin to token ratio model is the most mainstream stablecoin model. In this model, the minting and/or burning of stablecoins corresponds to the price of the underlying asset (e.g. 1.5 USD OIN per 1 USDO). Initially, the system will set the ratio of the value of the collateral to the stablecoin. When the collateral value exceeds this ratio, users can create more stablecoins. When the value of the collateral is below this rate, the user cannot mint the stablecoin, but the user can still redeem the underlying assets by returning the stablecoin to OINDAO. MarkerDao applies this model. The most important advantage of this model is the variable token ratio is that multiple stablecoins can be created dynamically as the token price changes to keep within the target collateral rate. The most significant downside is that when the price of the token fluctuates sharply in the short-term, it is possible to create too many stable coins, reducing the stable coin’s peg to 1. This model helps projects to incorporate stable coins. their commitment to the ecosystem, but it also increases the risk of making stablecoins unstable.
OINDAOV3 – Token ratio change and asset liquidation
Both V1 and V2 stablecoin models do not involve liquidation of assets. The most significant advantage of the stablecoin model with single vault liquidation is improved capital efficiency. In contrast, the stablecoin model without single vault liquidation needs to set a higher collateral rate to improve system security.
For example, in Marker, the ETH pledge pool’s liquidation rate is 150%, while the collateralized asset ratio in Synthetix is 750%. However, liquidated stablecoins require multiple liquidators to ensure instant liquidation, thereby reducing systemic risk. Most projects are committed to creating stablecoins solely for use in their ecosystem, and their market value is difficult to make liquidators profitable, so a stablecoin system needs to be liquidated.
Public chains other than Ethereum have a real need for liquidated stablecoins. V3’s system is a stablecoin system combined with single vault liquidation, similar to MarkerDAO. Also, compared to Maker, V3 version will add multi-slot mining module. While improving capital efficiency, miners can also gain many benefits from mining.
Model OINDAO V3
Present, OIN Finance in development version OINDAO V1, Next time OIN Finance will develop OINDAO version on Polkadot in Q3/2021 and launch stablecoin swap on Polkadot in Q4/2021. Then in 2022, OIN Finance will launch OINDAO V2.
OIN-Swap – Stable currency trading platform integration
With the gradual growth of the OINDAO platform, more stable currencies issued through the OINDAO platform will appear on different public chains. At this point, the demand for cross-chain stablecoin transactions will naturally increase. OIN-Swap is a stablecoin trading platform that aggregates cross-chain functions. The platform will gather bridges between different public chains and adopt AMM’s DEX mechanism to provide a simple and easy to use cross-chain stablecoin trading experience.
After mining the stablecoins, token holders can use the OIN Swap to swap with other mainstreams (USDT, USDC, etc.). This allows users to continue to hold positions in their favorite projects, while leveraging their holdings to participate in other activities/investments in the crypto and DeFi space with additional main barns.
Highlights of Oin Finance (OIN)
- Cross-chain technology: Allows OIN to connect to other blockchains and vice versa.
- Decentralization: Oin uses the Tendermint consensus algorithm to ensure decentralization. This algorithm will ensure final consensus while avoiding divergence issues, which can lead to forking.
- Security: Oin secures users’ asset conversion information with Merkle Proof. Any action that takes place on Ethereum that is related to Oin is stored in the Merkle Tree. The root of the Merkle Tree will be written to the block header and a Merkle Proof will be generated. ETH-Broker Node. After receiving the block header, it will verify its Merkle Proof to ensure the legitimacy of all recorded events.
ECONOMIC MODEL AND GOVERNANCE OF OIN TOKEN
OIN token holders can get economic value under the OINDAO agreement.
The project side issues stablecoins through the OINDAO platform and has to pay the redemption fee / stability fee to the system. 2/3 of the fee goes to a public address, used to redeem the OIN and destroy it regularly, the community monitors through voting to ensure that the OIN is a deflationary token. 1/3 is transferred to the team to ensure the sustainable development of the project.
OIN token holders have admin rights widely for the OIN . protocol
a. OIN token holders have the right to manage stablecoin issuance projects on the OINDAO platform, which is mainly reflected in the community voting, can choose to implement different stablecoin versions and adjust the parameters of the platform. The power of governance is achieved in two ways:
- First, for projects that want to use their tokens to manage voting, the OIN token can be used as a “catalyst”, that is, voters who hold OIN have a greater weight when they drop out. votes in project tokens.
For example, the STPT community plans to manage their stablecoins through STPT voting. One STPT represents one vote, but the STPT of OIN holders represents two votes.
- Tokens of the OIN side and tokens of the project side vote for governance.
For example, let’s say OIN and STPT agree that OIN’s voting rate is 30% and STPT’s 70%. Then the final voting result is determined by the calculation result of the two coin voting.
b. When the project side is a public chain other than Ethereum, OIN combined with other chains have a larger voting weight.
For example, OINDAO has released a stablecoin based on Near. The wrapped OIN token on Near, when voting for stable currency parameters on the Near public chain, must have a larger voting weight than the OIN on Ethereum.
c. After more stablecoins are listed on the OINDAO platform, OIN holders will be able to make a proposal to vote OIN mining reward distribution ratio among different stablecoin pools.
Oin Finance (OIN) is a stablecoin issuance platform for all assets DeFi. Currently, OIN Finance has integrated on BSC, NEAR and the future is integrated on most platforms, allowing cross-chain asset trading. Join GTA team to watch the performance of OIN Finance, a potential project in the future and in my opinion, currently OIN tokens are being priced low (price at time of writing: $0.11) compared to the actual value of the project.
Here is all the information GTA Research team studied about Oin Finance and is not investment advice. Hope this article will help you get the necessary information and give your personal opinion about the project.