OIN Finance to Enable DeFi Users to Mint Stablecoins Using AVAX
The integration expands cornerstone DeFi functionalities to the Avalanche ecosystem.
OIN Finance, a stablecoin and staking derivatives issuance platform, is integrating its OINDAO platform with Avalanche, enabling DeFi users to mint stablecoins with AVAX as collateral.
Initially, OIN will support the creation of AVAX-backed stablecoins on the OINDAO on Ethereum. The main integration, set for completion in April 2021, will bring new opportunities and tools for value creation and transfer using the first native, collateral-backed stablecoins on Avalanche.
How OINDAO Creates Value for DeFi
OINDAO enables projects and users to mint their own branded stablecoins pegged to the US dollar with a customizable staking pool.
Users can then swap between this new stablecoin into other assets on Curve Finance, if desired, to leverage their holdings in a native token, while using stablecoins across DeFi applications.
- OINDAO users choose the token they wish to collateralize and stake the token to mint their own branded stablecoin
- Before the launch of each pool, certain collateral rates and liquidation points need to be set up, collectively called the Parameters.
- OINDAO users follow the collateral ratio to mint their stablecoin. If the token price reaches the liquidation point, the smart contract liquidates the pool through Uniswap
- After minting the stablecoins, token holders can use Curve to swap with other mainstream stables (USDT, USDC, etc.). This allows users to continue to hold positions in their favorite projects while leveraging their holdings to partake in other activities.
- To reclaim their collateral, users transfer the same amount of minted stablecoins through the OINDAO platform. OINDAO charges only a 0.3% stability fee when the user makes the redemption.
OINDAO is continually expanding to new networks, meaning Avalanche will be more accessible to new sets of users looking for new opportunities across DeFi.
“We have been striving to provide all blockchain projects, large or small, the ability to mint their own stablecoins. With Avalanche joining the OINDAO platform, we’re certain that its community will advance the possible use cases, and discover new value and applications of our service. We’re excited to be joining one of the leading DeFi ecosystems, and look forward to growing together with the Avalanche community.” — Richie Li, Co-Founder of OIN Finance.
Avalanche is quickly gaining traction with DeFi applications like TrueUSD, Pangolin, bZx, and Injective Protocol by offering users cheaper and faster transactions than other existing blockchain platforms. Integrating Avalanche into the OINDAO is the next step forward to bring increased interoperability to the DeFi space, and Avalanche’s high-performance capabilities to the masses.
Avalanche is an open-source platform for launching decentralized finance applications and enterprise blockchain deployments in one interoperable, highly scalable ecosystem. Developers who build on Avalanche can easily create powerful, reliable, and secure applications and custom blockchain networks with complex rulesets or build on existing private or public subnets.
OIN Finance to Enable DeFi Users to Mint Stablecoins Using AVAX was originally published in Avalanche on Medium, where people are continuing the conversation by highlighting and responding to this story.