Open Dollar

Sep 29

A primer on NFVs and how Non-Fungible Vaults improve CDPs

Despite going through the coldest of crypto winters, DeFi continues to gain leverage over inefficient Tradfi products. Lending, in particular, has found a strong product-market fit, as it enables users to borrow tokens by locking their assets in Collateralized Debt Positions (CDPs). While CDPs create new opportunities to leverage and monetize one’s assets, they’re often inflexible due to infrastructure limitations. Open Dollar resolves these issues by introducing a new way to access and manag...

Open Dollar

Nov 8

Why We Need Overcollateralized Stablecoins

In the unpredictable world of web3, stablecoins are consistent. Designed to minimize price volatility, they have become indispensable in bridging the gap between traditional finance and decentralized finance. This article delves into the significance of overcollateralized stablecoins and their pivotal role in ensuring trust and stability.What are stablecoins?Stablecoins, as the name suggests, are digital tokens designed to maintain a stable value. Unlike traditional cryptocurrencies like Bitc...

Open Dollar

Sep 29

Control Pegged Stablecoin Mechanics: How $OD Stays Stable

Stablecoins are an essential component of DeFi, and while their primary purpose is to offer safety from volatility and risk, their varied implementations sometimes expose users to danger, defeating the purpose entirely. Fiat-backed stablecoins were among the first to emerge with a simple premise: each token issuer holds its fiat equivalent in reserve to allow for redemption. While this sounds logical, it creates risks associated with the reliance on centralized custodians of these assets, bec...