Two former Goldman Sachs employees have launched Ondo Finance, a brand-new DeFi protocol, thanks to the $4 million seed equity funding the project has raised. Nathan Allman, the CEO of Ondo, was part of the digital assets team at Goldman Sachs, along with Pinku Surana, the co-founder, who was the VP of a technology team at Goldman Sachs. The founding members claim they identified the market opportunity in the DeFi space, which enables organizations to leverage a systematic exposure to decentralized products and services. Ondo Finance’s main goal is to target attract investors hesitant to invest in the crypto market due to uncalculated risks.
Another Ethereum-based DeFi Protocol
Ondo Finance, an Ethereum-based DeFi protocol, is designed to provide investors with a more transparent understanding of the market risks. By calculating and mitigating risks in the market, Ondo aims to allow organizations to increase the exposure for their assets. It is expected that this renewed investment approach is likely to increase the overall capitalization in the DeFi spaces. The service will be creating digital vaults called Ondo Vaults upon investments. The vaults are secured using smart contracts to help investors yield maximum returns.
Fixed Income in DeFi Space
In many ways, Ondo Finance claims to offer fixed income to investors. Recently, there have been discussions on how the lack of fixed income is repelling many investors from DeFi spaces. However, following the launch of Ondo Finance, some experts have added that the DeFi platform may address this issue. By ensuring a relatively high level of certainty and stable income, Ondo seems to have the potential to turn DeFi space into a more attractive and potentially lucrative investment space. Many organizations have also extended their support for the growth of Ondo Finance.
Future of Ondo Finance
Allman explains Ondo Finance has different investment schemes on offer. Customers can pick either the fixed yield position or the variable yield position. Customers will then receive a fixed income if they invest in the fixed yield position by keeping the assets locked in for a specific duration. On the other hand, the variable yield may subject the investments to a higher exposure risk and provide a better yield. In both cases, the capital derived from the assets will be used to improve the liquidity of the USDC-ETH pool. Allman adds that customers can choose the desired position and ratio, thereby generating a desired amount of profit.
Ondo Finance seems to have a clear plan about how to use the newly available funding. First, the company says it will be hiring qualified engineers, thereby expanding the current team. Second, the company says it will try to expand the support for more blockchains and yield strategies. Over time, Ondo Finance will likely offer more investment plans and materials to customers. Ondo Finance also has plans for launching a native token in the near future, but it seems to be a second priority at this point. Whether Ondo’s efforts in the DeFi space will attract participation from a currently hesitant investors’ community remains to be seen.