Market liquidity is an important aspect of decentralized finance and investing in general. If you have something valuable but nobody is buying, it may as well be dirt, right? Platforms like Uniswap solve this with Liquidity Providers who agree to arbitrate the trading of a pair of coins in exchange for a portion of each trade fee.
OpenDAO seeks to make liquid markets for a wide array of different real-world assets, and lack of liquidity could be a major problem.
The solution is Cash Boxes.
A cash box is designed for one individual asset or fund to tie it into the blockchain. For example, an Australian Real Estate Trust cash box has been running during the beta for several months.
On one end, a fund or investment group etc could approach OpenDAO to have their shares tokenized and listed on the Open Market. They agree to back these tokens with actual shares of a real-world asset and handle details related to their asset's connections. You can provide a stablecoin as liquidity in exchange for cashbox tokens which can be redeemed at anytime for equal parts of the asset token.
All the functions of OpenDAO are designed to be decentralized and transparent, and they have a clear vision for the future of the Cash Box technology, including DeFi liquid markets for stocks like AAPL and TESLA, real estate, and more.
The next leg of the journey, expected to begin by the end of 2020, is to roll out their stablecoin which can be minted when collateral is added to the chain. A planned cash box implementation to simplify the process for users should help adoption as we head into 2021.
Read More!
"Bridging offchain assets to DeFi"
https://medium.com/opendao/bridging-offchain-assets-to-defi-cb1742f5dba9
Website: https://opendao.io
Medium: https://medium.com/OpenDAO
Whitepaper: https://www.opendao.io/Whitepaper-OpenDAO.pdf
If you enjoyed this, please leave a like and a tip at the bottom! Comment down below what you think of OpenDAO and the idea of bridging the massive real estate and stock markets to the DeFi space.
Resources
https://medium.com/opendao/bridging-offchain-assets-to-defi-cb1742f5dba9
https://medium.com/opendao/double-sided-cashbox-80e433432fbe