For the first time, you can lend your Dogecoin in a decentralized manner to borrow a stablecoin. Go long on DOGE while utilizing your capital for other purposes.
OpenDAO began as a vision: to connect the massive real estate market to a burgeoning DeFi space with tremendous potential for growth. Empower common people with tools to borrow against valuable property, free of the politics and control of government, free from banking institutions which have so many people.
As the project took form, it expanded in scope. A loan market as described requires people on the other end to lend money - in this case, stablecoins - to be placed against the real estate collateral. The tokenization platform to make all this possible on the blockchain would be powerful. It could support other collateral besides real estate, and I believe the team decided to go this route for a more stable, incremental development to the end-goal of supporting fully off-chain, illiquid assets.
In simpler terms, OpenDAO aims to provide a decentralized bank. People and companies could approach the DAO and submit requests for new kinds of productive assets to be placed on the market as collateral, and $OPEN holders vote on whether to add this new asset. By holding collateral in counter-balance to liquid on-chain assets provided by lenders, they can replicate the function of MakerDAO in a simpler, and likely better, way.
RenVM is an open protocol for bringing "inter-blockchain liquidity for all decentralized applications". At this time, they have an ERC20 token for BTC, BCH, and ZEC. This way, DeFi liquidity projects and other decentralized protocols running on the Ethereum network can access tokens not native to the chain.
OpenDAO's yDollar interface can be used to mint a 3-month rolling stablecoin contract with ETH or BTC as collateral. As of writing this, over $50 million worth of collateral has been locked up in this contract between the two.
Minting a stablecoin on your holdings as collateral allows you to use your funds for other purposes, while remaining in a position that you believe will perform well. Use the stable to buy more coins if you want to take what is essentially a trustless, decentralized leveraged position!
Alternatively, locking your minted yDollars into a Balancer pool can earn you rewards while maintaining your regular position.
Compound uses an algorithm to determine interest rates based on utilization. Nothing stops utilization from reaching 100%, although it rarely stays there for long. In these occasions, pools become fully utilized and lenders are unable to withdraw capital. The rates are optimized to encourage the market to keep the lending pools solvent.
MakerDAO adjusts interest rates with the goal of keeping the peg of 1 Dai = $1. These rates are the cost of borrowing (stability fee) and the returns to holding (Dai Savings Rate.) They are adjusted by governance vote. There are extraneous forces that can pull the price of Dai off-peg, and governance is tasked with adjusting interest rates accordingly.
Rates on both protocols are variable.
The interest rates associated with the [yDollar] move freely on the market AND rates are fixed at the time of trade.
OpenDAO and UMA have a lending market for BTC and ETH. Now there's some great news for Dogecoin fans. It's time to put your favorite good boi $DOGE on a leash and lead him into the liquidity pool!
Go long or leveraged on DOGE in a decentralized trustless manner. Coming soon to the yDollar interface on OpenDAO.io
renDOGE ERC20 contract https://etherscan.io/token/0x3832d2F059E55934220881F831bE501D180671A7