Open DAO: Bridging real world assets to Defi

OpenDAO Bridges Gap Between Real-World Assets and DeFi

By lucasc | Crypto Thoughts | 20 Nov 2020

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.

OpenDAO Launches To Bridge The Gap Between Real World Assets Such As Real Estate To Defi; Yahoo! Finance

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 makes 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.

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 LPs 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. 

What's coming?

Uniswap listing for the governance token $OPEN is coming 26th of November. The official contract address is 0x69e8b9528CABDA89fe846C67675B5D73d463a916. ETH-OPEN liquidity pool will be made available at the same time for users to begin earning $OPEN.

The governance token will incentivize liquidity providers to support these markets on the Open Money Market or OPM, a fork of Compound money market adapted to OpenDAO. 

Simple graphic illustrating incentives for actors in the OpenDAO network to cooperate and earn rewards

The team decided to do initial distribution via Uniswap for ease of use and access. You can read more about the launch on the OpenDAO Medium page. OPEN Governance Token Launch

Where can I find out more?

Subscribe to the YouTube Channel and watch some of their informational videos and developer talks!

Official Twitter @OpenDAOProtocol


Telegram Group

Read the whitepaper
or the simplified litepaper


How do you rate this article?



Nodejs and Java Developer, learning blockchain.

Crypto Thoughts
Crypto Thoughts

My general ideas, thoughts of cryptocurrency and blockchain technology.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.