What is Ondo (ONDO)?

Deep Dive

1. Bridging TradFi and DeFi via RWA Tokenization

Ondo Finance converts traditional assets (e.g., bonds, stocks) into blockchain-based tokens, enabling 24/7 liquidity and fractional ownership. For example, its USDY token represents yield-bearing U.S. Treasuries, while Flux Finance allows lending against tokenized securities as collateral (Ondo Foundation).

2. Governance and the Ondo DAO

ONDO holders govern key decisions:
- Listing new assets on Flux Finance.
- Adjusting interest rates.
- Managing protocol treasuries and emissions.
The DAO has over 11,000 token holders and supports partnerships with institutions like BlackRock and JPMorgan (Ondo Foundation).

3. Technology Stack

• Ondo Chain: A Cosmos SDK-based Layer 1 blockchain designed for institutional RWA tokenization. It integrates compliance tools, cross-chain bridging, and EVM compatibility for DeFi developers (Cosmos).
• Flux Finance: A lending protocol for tokenized securities, governed by ONDO holders.

Conclusion

ONDO anchors a decentralized ecosystem that tokenizes real-world assets, merges TradFi reliability with DeFi innovation, and prioritizes institutional-grade compliance. Its success hinges on adoption of RWAs—could Ondo’s infrastructure become the backbone of on-chain capital markets?