UMA Protocol lets developers build synthetic assets - a special kind of digital token which follows the price of some other valuable asset. For the last 3 months, they've run a Yield Dollar to mint based on collateral with a time limit. They represent a 3-month fixed term loan, so if you believe in the success of Bitcoin or Ethereum, you can get USDC as a loan while holding that crypto as collateral and basically step into a "long" position by purchasing even more of that coin with the USDC. 3 months down the line, you will have to re-purchase the yDollar contract token to redeem your collateral, and the tokenomics will have played out to bring the yDollar close to value of exactly $1. This leaves some users having paid an effective "interest rate" for taking the loan - in return for potentially huge profits borrowing to get more crypto, while others may have scalped profit simply buying and holding the yDollar!
As of December 23rd, OpenDAO launched a more user-friendly UI through which can mint yDollar, and then some!
It can also be used for converting BTC to renBTC, so you can use your Bitcoin in DeFi. From that point, you can use the BTC as collateral to mint yDollars. ETH is also available as a collateral choice.
The amount of collateral placed on UMA's latest yDollar contract, which will run from December through to March, has exceeded $25m (that's MILLION) as of January 2nd. More incentivization and marketing is planned in the coming months to expand the Open Market to make it viable for more illiquid property.
UMA has perpetual contract being audited right now. This will be the system on which OpenDAO can build a lending solution with support for all kinds of collateral! Tesla stock shares, real estate property, and more could be added. OpenDAO's Cashbox system has been tested for months with hackathons and incentivization for users to provide liquidity to an Australian real estate fund.
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Stablecoin lending: https://opm.opendao.io
Governance token LP farming securely via unicrypt: https://openlp.opendao.io
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