OIN Finance, the DeFi platform centered on connecting blockchains to the Ethereum ecosystem, has onboarded its first partner. STP Network has joined OIN Finance, commencing with the addition of the STPT token to OIN’s leveraging platform to mint project-specific stablecoins. The first token to be listed by an OINDAO partner project, STPT can be used to mint the corresponding USTP stablecoin.
STP Network appears to have been chosen as OIN’s first official partner due to the strong synergies between the two projects. Like OIN Finance, STP is seeking to tokenize assets to support decentralized trading and value transfer. The STP team has decided that the best way to achieve this is through integrating its native token with OINDAO, where it can be staked to mint USTP, allowing for stablecoin-based leveraging and rewards.
A Stablecoin With a Wealth of Applications
After acquiring STPT and using it as collateral to mint USTP stablecoins, which are soft pegged 1:1 with the USD, DeFi users can interact with the STP ecosystem. Like other DeFi-focused stablecoins, USTP can be used to generate yield, as a hedge against volatility, and to send and receive payments. As with Maker’s DAI stablecoin, USTP is over-collateralized in STPT to reduce the likelihood of liquidation.
As the OIN Finance ecosystem evolves, new use cases for OIN and for its own stablecoin, USDO, are envisaged. One of these is leveraged trading, giving DeFi speculators the ability to increase their position size on trades, with USDO serving as collateral. OIN Finance is currently developing its platform with the goal of transforming it into a multi-purpose portal for token swapping, generating yield, leveraged trading, and minting stablecoins through its product lines such as OINSWAP. At present, OIN holders can mint USDO stablecoins while earning an attractive APY on their staked assets of up to 350%.
The Quest to Make DeFi Interoperable
For decentralized finance to realize its true potential, it needs to be easier for beginners to onboard and start interacting with DeFi protocols. At present, the user experience is impaired by the steep learning curves and by being limited to the Ethereum ecosystem.
DeFi developers have been steadily breaking down these barriers to entry, pioneering gas-less wallets, integrating fiat onramps, and facilitating cross-chain swaps. Ethereum’s lack of interoperability and low throughput inspired the creation of Polkadot by the former’s co-founder, Gavin Wood. Polkadot is one of several smart contract blockchains seeking to overcome several of Ethereum’s shortcomings mentioned above.
OIN Finance is approaching the problem from a different angle, making it easier for assets both within and outside of Ethereum to be utilized for DeFi purposes. OIN currently enables ERC20 tokens to be integrated into its decentralized platform, and plans to add cross-chain functionality. OIN ultimately hopes to create a system in which non-ERC20 tokens can be exchanged as easily as on Uniswap, and add other DeFi functionality such as lending and staking, can be enjoyed.