Ondo Finance Unveils Layer 1 Blockchain to Bridge Traditional and DeFi
Ondo Finance, a protocol focused on real-world assets, has introduced Ondo Chain, a Layer 1 blockchain designed to integrate the benefits of decentralized finance (DeFi) with the regulatory requirements of traditional securities markets.
| Key Takeaways: – Ondo Finance launched Ondo Chain, a Layer 1 blockchain designed to merge DeFi with institutional security standards. – Ondo Chain features vetted token staking, permissioned validators to prevent front-running, and a hybrid governance model to facilitate tokenized real-world assets. |
The development of Ondo Chain stems from challenges faced while building Ondo Global Markets, a securities trading platform. According to the company, existing blockchain infrastructure presents hurdles such as DeFi incompatibility, fragmented liquidity across networks, volatile transaction fees, and institutional hesitancy toward public chains.
Nathan Allman, CEO of Ondo Finance, stated that the new blockchain aims to uphold institutional-grade security while maintaining an open framework for developers and innovators.
Ondo Chain will utilize a proof-of-stake model where vetted tokens, already generating yields, serve as collateral. Validator nodes will dynamically select these assets, optimizing security costs and expanding yield opportunities.
Ondo Finance emphasized that leading asset managers will have the capability to tokenize their holdings. The project has attracted notable industry players, with Franklin Templeton, Wellington Management, WisdomTree, and Google Cloud contributing as design advisors for the Ethereum Virtual Machine-compatible chain.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
