The Bitcoin-based meme cryptocurrency Dogecoin will soon be used to mint stablecoins through a partnership with OpenDAO and Ren.
In an ongoing collaboration with token wrapping protocol Ren, OpenDAO has enabled Dogecoin to be used as collateral to mint a dollar-pegged and doggy themed stablecoin called DOGEO.
Dogecoin aficionados and investors can now take out DeFi loans using their Shiba Inu-themed digital assets as collateral. The process begins by converting DOGE into a wrapped token on the Ren protocol called renDOGE. After which, it can be used for DeFi operations;
“DOGE is no longer ‘just a meme’ coin, and is now a viable financial instrument in its own right.”
Dogecoin on OpenDAO with Ren
Once the Dogecoins have been wrapped by Ren, they can be used as collateral to mint a stablecoin called DOGEO. This can, in turn, be used to swap with other dollar-pegged stablecoins for DeFi liquidity provisions or for lending and borrowing.
OpenDAO is a protocol that brings real-world assets to the DeFi ecosystem by tokenizing them in a similar way to Synthetix. It’s currently in the process of developing a suite of flagship stablecoins and has its own multi-asset collateral backed one called USDO.
It aims to do better than existing stablecoins such as USDC, Tether, and Dai which it claims are centralized, have questionable backing, and are “susceptible to flashloan attacks and complex hacks.”
OpenDAO said that the incorporation of Dogecoin into DeFi would do wonders for its credibility;
“The further incorporation and networking of projects in the DeFi and wider cryptospace serves the further establishment of Dogecoin’s credibility, utility, and scale.”
Ren is powered by RenVM, which was released in May 2020 as a network of virtual computers that drives interoperability for decentralized applications. In this way it can enable cross-chain lending, exchanging, and collateralization of digital assets.
DOGE Price Update
Dogecoin prices have retreated marginally on the day to $0.008. It spiked in early January to its highest price in three years at $0.0138 but has fallen back since.
Over the past year, however, Dogecoin is up 250% and its market capitalization is just over $1 billion. Its all-time high came in the altcoin boom of 2017/18 when it reached $0.017.
REN has fared much better with a 72% gain so far this month. It hasn’t moved much over the past 24 hours and is holding steady at $0.56.