QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
$24 349 000 USD
MARCH 2022
GLOBAL
OPENDAO
DESCRIPTION OF EVENTS
"The Permissionless Stablecoin Minting Protocol. Mint USDO with the tokens you own. Trade USDO for the tokens you want."
"USDO (USD Open Dollar) is a multi-collateral backed stablecoin by OpenDAO. USDO takes the multi collateral and overcollateralized philosophy of DAI and scales it to support an ever growing collateral list of both crypto and real world assets in a permissionless manner." "Whilst USDO’s purpose is simple, its ecosystem is rich and deep. Minters can participate in all stages of the minting lifecycle, from staking their assets right through to liquidity farming. New applications of USDO get added regularly."
"The OpenDAO stablecoin, tentatively named $USDO, will be built into the already-functioning Cashbox System and Open Market Protocol, so it will be used for and backed by a growing selection of assets. As more kinds of collateral are added, it will be increasingly diverse and strong backing for a stablecoin."
"The Open Project seeks to connect real world assets to DeFi. Our suit of stablecoins, which covers many denominations including the US dollar, the Euro, the Australian dollar, and the Indian Rupee, serves as the key bridge for this process. These stablecoins are backed by a range of collateral that includes both on-chain and off-chain assets."
"OpenDAO has developed seemless, trust-minimized, programmatic liquidation processes, to handle offchain defaults, thus allowing for the inclusion of stocks, commodities, real estate, and more, as collateral. The OpenDAO controls the Open Project by administering grants and funding ventures that are synergistic with the mission of connecting real world assets to DeFi. This includes on-chain applications such as minters, trading AMMs, lending and borrowing platforms, fiat exchanges, as well as on and off ramps that facilitate the adoption of the USDO stablecoin suite."
"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. "
"The OpenDAO stablecoin, tentatively named $USDO, will be built into the already-functioning Cashbox System and Open Market Protocol, so it will be used for and backed by a growing selection of assets. As more kinds of collateral are added, it will be increasingly diverse and strong backing for a stablecoin."
"When liquidity is locked into a market between the OpenDAO stablecoin and a tokenized stock or real estate fund, it essentially confirms that stablecoin being valuable in relation to real markets. The incentives and stable growth of real-world markets can entice larger groups to prefer $USDO to competitor stablecoins."
"Over 67% of total supply is locked in Team Finance token lock contracts for 12 months." "All of our code is open source and viewable on github." "Our contracts have been audited as well as those of our partner's which we utilise." "Key pieces of our architecture are built on battle-tested code with our partners." "Pancake Swap Yield Farming contracts locked for 3 months."
It doesn't appear that any response to the depegging has been issued by the OpenDAO team on Twitter, and no new posts have appeared on Medium. The development of OpenDao ended after July, with lead developer Akshay Srivastav appearing to shift to other projects such as a name registry and Infinix Finance.
"USD Open Dollar Price (USDO) [as of November 4th, 2022]: $0.1068" "The live USD Open Dollar price [as of November 14th, 2022] is $0.123759 USD with a 24-hour trading volume of $277.69 USD".
OpenDAO launched with the ambitious goal of creating a stablecoin that was intended to be widely adopted throughout decentralized finance. Unlike other coins, the OpenDao was intending to be backed also by real world assets in addition to digital assets, promising a liquidation handling method for dealing with potential defaults. The protocol maintained a peg through to March 7th, 2022. It doesn't appear that any response to the depegging has been issued by the OpenDAO team on Twitter, and no new posts have appeared on Medium. The OpenDAO Reddit has been taken over by posts related to an unrelated project TheOpenDao. GitHub commits have stopped as of July. Overall, it appears that this project has potentially been abandoned, and it's unclear how that's resulted in a price drop since the project claims to have overcollateralized liquidity backing all tokens.
HOW COULD THIS HAVE BEEN PREVENTED?
While the project has undergone many audits, it doesn't appear any of them included the USDO mechanisms. It would be recommended to require a third party review of prior to launching, which would ensure that there is a full backing and redeem ability of assets. Our framework recommends review by two separate review firms, with an additional review after 3 months of operation. An industry insurance fund could then also be made available to assist in unexpected situations that still made it through the review process.
@ABettaMeta Twitter (Jul 13)
https://coinmarketcap.com/currencies/usd-open-dollar/ (Nov 3)
OpenDAO: USDO Token | Address 0xc79358de3868a7c751f52cfeecd650595aee8b18 | PolygonScan (Nov 3)
USD Open Dollar Price in USD: USDO Live Price Chart & News | CoinGecko (Nov 14)
@opendaoprotocol Twitter (Nov 14)
@opendaoprotocol Twitter (Nov 14)
Comprehensive List of Failed Stablecoins - CryptoSec (Oct 28)
The Rising Standards of DeFi Amidst A Bear Market (Nov 14)
OpenDAO - The Permissionless Stablecoin Minting Protocol (Nov 15)
OpenDAO – Medium (Nov 15)
Usdo Stablecoin on Metis Via AgoraDeFi Money Market (Nov 15)
Telegram: Contact @opendao (Nov 15)
OpenDAO (Nov 15)
Algorand and OpenDAO — Joining Forces (Nov 15)
@opendaoprotocol Twitter (Nov 15)
OpenDAO · GitHub (Nov 15)
akshaysrivastav (Akshay Srivastav) · GitHub (Nov 15)
Commits · opendao-protocols/open-mint-react · GitHub (Nov 15)
Summary - Whitepaper v2 (Nov 15)
Introduction - Transparency (Nov 15)
OpenDAO - YouTube (Nov 15)
Security - Transparency (Nov 15)
OpenDAO Builds New Yield Dollar Interface on Top of UMA, Accepts BTC as Collateral – Press release Bitcoin News (Nov 15)
OpenDAO - Real World Assets for DeFi (Nov 15)
OpenDAO Price Today (Official) | Live OPEN Price Chart in USD | CryptoRank.io (Nov 15)
Morioh (Nov 15)
OpenDAO - Bridging Real World Assets to DeFi (Nov 15)
https://www.publish0x.com/crypto-thoughts/how-opendao-plans-to-make-a-strong-stablecoin-xrylprk (Nov 15)
https://www.publish0x.com/crypto-thoughts/what-are-opendao-cash-boxes-for-xnqeemm (Nov 15)
OpenDAO enables Dogecoin’s use as a stablecoin called DOGEO - The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News (Nov 16)
Audits - Transparency (Nov 16)
audits/CashBox-v1 Quillhash Audit Report October 2020.pdf at master · opendao-protocols/audits · GitHub (Nov 16)
OpenDAO: A DeFi Bank (Nov 24)
