OIN Finance (OIN): A detailed review | Pvot

· 5 min read
OIN Finance
OIN Finance

Several decentralized finance (DeFi) initiatives have taken up the majority of the Ethereum network's transaction capacity. As a result, the blockchain is overburdened with traffic, and gas prices are skyrocketing, making it difficult for people to transact on it. This bottleneck has had a negative influence on the DeFi space as a whole, slowing adoption.

OIN Finance dipped into the Ontology network to get around this issue, making it the first DeFi protocol built on the Ontology chain. Since the beginning of their initiative, all of their efforts have been focused on building a thriving user community. They will, however, install a system that can work across chains in the near future.

What is OIN Finance?

On top of the Ontology network, OIN Finance is a decentralized liquidity pool exchange platform. Its major products and services include lending and borrowing, exchanges, and stablecoins, which are the same as most DeFi projects based on the Ethereum network. The OIN Finance ecosystem is made up of native apps such as the OINSwap, OINLend, OINDAO, OINWallet, and the USDO stablecoin. These applications can start working cross-chain after the platform has deployed its bridge technology.
The OIN Swap platform is one of the more fascinating platforms modeled by Ethereum equivalents. It allows users to create their own decentralized exchanges (DEX) with their own market maker in a simple and convenient manner. By staking their assets in OIN's pool, users can contribute to the network's liquidity.

They, like other DeFi platforms, provide yield farming opportunities through services like as OINLend, which allows users to lend or borrow assets in order to earn interest fees or leverage their capital.

The team behind OIN is primarily concerned with nurturing its Ontology community. Adoption will be easier if they achieve their goal of minimizing problems caused by network congestion and increased gas fees.

Attributes of OIN Finance

Interoperability

OIN is developing a bridge technology to connect Ontology to other Ethereum-based DeFi platforms. Their purpose is to assist it in growing in conjunction with other projects. Eventually, OIN Finance's cross-chain design will allow it to expand its services and provide more options to its users.

Decentralized

OIN uses the Byzantine Fault Tolerance (BFT) mechanism instead of mining to obtain consensus utilizing the Tendermint consensus algorithm. Even if a third of the network's nodes fail, the network can still represent an accurate state. This eliminates the potential for mining to be concentrated among those with the most network capacity.

A reward scheme funded by its own stablecoin also assures a continual flow of incentives for nodes to work and keep the network in good shape.

Fast and Secure

OIN may develop a rapid validation procedure for each transaction initiated on the blockchain using the Merkle proof mechanism. This works by posting little amounts of data on the ledger that lead up to a "root transaction" that may be used to validate a bigger database of data.

OIN Finance’s Services

OINSwap V1 Pool

OINSwap's core platform will be the Ontology network. Users can start their own DEXes to swap OIN tokens for other supported digital assets using the V1 Pool. Supply and demand affect the prices of assets listed on the pool.

OINSwap V2 Pool

They can start operating OIN Swap's V2 pool as soon as the cross-chain bridge is successful and ERC-20 assets can run to and from the Ontology network. OIN tokens are utilized in this case to reflect the value of some tokens in OIN Swap.

OIN Wallet

OIN features its own hot wallet, which users can use to store supported tokens and make other network transactions. OIN Wallet will be able to interact with Ethereum after the Ontology-Ethereum bridge has been established.

Ontology customers will be able to use Ethereum-based platforms like Curve, Balancer, and Compound in this scenario.

USDO

USDO is the network's stablecoin, pegged to the US Dollar. It's the world's first decentralized stable token based on Ontology. Ontology's native token, ONT, backs USDO.

To profit from staking and liquidity mining, the stablecoin can be deposited into the OIN Swap or OIN Lend pools.

$OIN Token

OIN Finance's native asset is the OIN token. It will be used for governance, collateral rewards, and clearing remuneration.

The platform manages operations using the OIN token and a community governance approach. The coin can be used to pay for transaction fees, staking, and community voting, to name a few things.

The OIN token has a tremendous following. The token's public auction was 50 times oversubscribed, and it went live on Uniswap, Bitmax, and BiBox on September 3rd, 2020. Those who were fortunate enough to get into the public sale were able to purchase OIN tokens for USD$0.08, and considering that the price of OIN is approximately USD$1 at the time of writing, these holders have every reason to be delighted.

OIN DAO

USDO can be issued via OIN DAO as well. USDO has its own pool in the Ontology platform because it is collateralized by ONT. Those with ONT can mint USDO at a 300 percent initial collateralization rate.

If the USDO's collateralization falls below 180 percent, the clearing mechanism (similar to how liquidations function in MakerDAO) kicks in. Users who do not want to borrow or lend USDO can instead submit them to OIN Swap or OIN Lend to mine liquidity.

OIN Lend

There are no third parties involved in lending and borrowing operations to facilitate the exchange of tokens. Users just deposit tokens into smart contracts, which then constitute the platform's underlying assets.

OIN mints tokens according to the current market conditions from the tokens put in smart contracts.

OIN Chain

The OIN Chain layer is constructed on top of the OIN platform to support the protocol's cross-chain interoperability functionality. This will aid in the integration of Ethereum's DeFi projects, allowing the Ontology network to deliver more assets.

It will be a multi-functional adaptor that will connect Ethereum and Ontology, as well as additional public chains in the future.

Liquidity Mining and Staking

Liquidity mining and staking will account for half of all OIN tokens in circulation. USDO collateral pools, which keep assets in OIN DAO and OIN Lend, allow holders to contribute to the supply.

Liquidity miners generate OIN tokens, which are then sent directly to OIN Swap's liquidity pool. OIN Lend's pool will be able to accept ERC-20 tokens from stakes as soon as the cross-chain bridge is operational.

Every day, staking incentives will contribute at least 40% of all created tokens, with the remaining 60% coming from liquidity mining rewards. However, because the OIN DAO can decide to reorganize the distribution for reward distributions at any time, this is merely a temporary setup.

Conclusion

Although a DeFi platform built on top of the Ontology network is still in its early stages, it appears to be promising. The volume of traffic on the Ethereum network is currently a stumbling block for many DeFi initiatives. It has an impact on adoption and the number of transactions it can manage. The community is undoubtedly anticipating a fresh innovation that is free of the same obstacles.

If the OIN project succeeds, it might become one of the most formidable opponents to prior DeFi ventures built on the Ethereum network. Overall, it's a win-win situation for the DeFi and crypto communities.