Ondo

Ondo is a decentralized finance (DeFi) project that offers risk-isolated, fixed-yield loans backed by yield-generating crypto-assets. It is a permissionless protocol allowing users to engage in peer-to-pool interactions without intermediaries. Ondo Finance, which includes the ONDO token, is backed by Coinbase and is a part of the Ethereum ecosystem. The ONDO token serves as the governance token for the Ondo DAO, which oversees changes to the Flux Finance protocol​​​​​​.

Ondo facilitates the creation of Ondo Vaults, where lenders and borrowers (liquidity providers) contribute capital. These Vaults use smart contracts to enforce loan provisions and do not commingle risks, allowing lenders to have specific control over acceptable collateral, use of proceeds, and loan-to-value thresholds. The protocol supports fixed yield (FY) depositors who seek stable yield with mitigated downside risk and variable yield (VY) depositors who aim to maximize returns using leverage. Ondo has launched several Vaults with varying caps and yield options​​.