Ondo Finance

Ondo Finance is an open, permissionless, decentralized investment bank. Ondo's core business is to service and connect various stakeholders in the emerging DeFi ecosystem -- including DAOs and increasingly institutional and mainstream retail investors -- through fully on-chain services.

Ondo is both a bundler and an unbundler of DeFi products and services. We bundle together financial products from many protocols (and soon from across many blockchains). We then repackage and decompose these pools into exposures that fit what different types of investors are looking for. In doing so, we increase the amount and diversity of capital supply that DeFi is able to absorb.

The business model of Ondo is to intermediate and matchmake capital supply and demand, much like a traditional investment bank. However, Ondo differs from a traditional investment bank in a few important ways:

• Ondo creates financial products from DeFi building blocks, meaning they execute according to open source code rather than opaque prose legal agreements. This avoids the need for back office staff and countless intermediaries and makes it possible for Ondo to provide its services at almost no marginal cost, making them accessible to even small investors.

• Ondo's products interoperate with and typically sit on top of existing DeFi products, allowing for frictionless value transfer.
• Ondo will be governed as a DAO and owned by a distributed set of participants, including by many of its users.
• As a DAO, Ondo will have an incentive system to enable anyone to create a product or service or otherwise add value to the Ondo ecosystem and be rewarded for it. However, the DAO will still curate products in order to safeguard users.
• Ondo has no investment minimums. Retail can access the same products and services alongside institutions.
• Ondo is a decentralized investment bank accessible to anyone and that is owned by and exists to serve DeFi participants, including DAOs.

Is an open, permissionless, decentralized investment bank. Ondo's core business is to service and connect various stakeholders in the emerging DeFi ecosystem -- including DAOs and increasingly institutional and mainstream retail investors -- through fully on-chain services.

Ondo is both a bundler and an unbundler of DeFi products and services. We bundle together financial products from many protocols (and soon from across many blockchains). We then repackage and decompose these pools into exposures that fit what different types of investors are looking for. In doing so, we increase the amount and diversity of capital supply that DeFi is able to absorb.

The business model of Ondo is to intermediate and matchmake capital supply and demand, much like a traditional investment bank.

However, Ondo differs from a traditional investment bank in a few important ways:

• Ondo creates financial products from DeFi building blocks, meaning they execute according to open source code rather than opaque prose legal agreements. This avoids the need for back office staff and countless intermediaries and makes it possible for Ondo to provide its services at almost no marginal cost, making them accessible to even small investors.
• Ondo's products interoperate with and typically sit on top of existing DeFi products, allowing for frictionless value transfer.
• Ondo will be governed as a DAO and owned by a distributed set of participants, including by many of its users.
• As a DAO, Ondo will have an incentive system to enable anyone to create a product or service or otherwise add value to the Ondo ecosystem and be rewarded for it. However, the DAO will still curate products in order to safeguard users.
• Ondo has no investment minimums. Retail can access the same products and services alongside institutions.

Ondo is a decentralized investment bank accessible to anyone and that is owned by and exists to serve DeFi participants, including DAOs. Ondo's vaults allow investors to better balance risk with rewards while gaining exposure to yield-generating crypto-assets on Ethereum. ‌Ondo vaults generate yield through providing liquidity on DeFi protocols like Sushiswap and pay out returns to investors in fixed and variable yield tranches. Fixed tranches provide liquidity providers with a steady yield and reduced downside risk. Variable tranches provide liquidity providers with leveraged exposure to both the upside and risks of the invested collateral. ‌ Ondo has complete three audits -- one by Quantstamp, one by Peckshield and one by Certik. Ondo is highly experimental software. As always, please be aware that audits do not guarantee a protocol's security.

What is the subscription period?

Before each Ondo Vault is deployed, there is a subscription period -- a set amount of time during which LPs can make requests to invest in either the fixed or variable tranche. Once the subscription period ends and the Vault is deployed, additional capital cannot be added to that Vault.

Why is there a subscription period?

Ondo forces the fixed and variable tranches to each comprise 50% of a Vault's assets. This way, the risk profile of each tranche is knowable in advance. The fixed tranche is initially a 50% loan-to-value position and the junior tranche is initially a 2x levered position. Additionally, with a 50 / 50 constraint on the size of the tranches, liquidity providers to the fixed tranche can contribute one of the two assets comprising an AMM's liquidity pool and liquidity providers to the variable tranche can contribute the other asset.

What is Ondo’s guarded launch?

Ondo’s guarded launch implements an approximately $5m protocol-wide cap. The purpose of the guarded launch is to minimize the risk of losses of particularly large amounts of liquidity provider assets in the event of a security exploit. We will increase then remove the TVL caps over time.

How does the guarded launch work?

The core Ondo smart contracts enforce the caps at the end of the subscription period, but users can technically still deposit an unlimited amount of assets until the end of the period. We will remove Vaults from the ondo.finance web application once the cap is hit, and we would discourage users from making subscription requests to a Vault after it has been removed from ondo.finance as those requests are very unlikely to be filled. Subscription requests that come in after the cap is reached will be available to be reclaimed by users at the end of the subscription period.

Does Ondo have a token?

Ondo has no token at this time. The Ondo team will not contact you requesting funds or advertising a token sale. Please report anyone advertising an Ondo token to the moderators.