Optim – Optimization capital allocation. Here’s an introduction to the project, its features and direct access to their website.
Optim Finance offers you direct access to innovative yield products built on Cardano.
Optim – introduction:
Optim Finance is a Yield Generation DeFi protocol on the Cardano blockchain. Leveraging the composability of DeFi protocols as well as the unique architecture of the Cardano blockchain. Optim Finance creates and enables broad access to yield generation products.
This ecosystem has enabled the issue of the very first ISPO (Initial Stake Pool Offering) bond.
The bond is for ADA 250,000, with an impressive annual interest rate of 7%.
This pioneering financial instrument is specially designed to meet the diverse needs of the Cardano community, allowing anyone to borrow ADA delegation rights and direct them to a Cardano ISPO of their choice.
This makes it possible to delegate more ADA than one owns to ISPOs, facilitating the growth of the ecosystem and projects that resonate with their values.
Optim’s first suite of products will be based on Liquidity Bonds, a simple primitive unique to Cardano DeFi that leverages Cardano’s well-evolved and distinctive staking system. Liquidity Bonds allow anyone to borrow or ‘rent’ ADA staking rights and associated staking rewards for a fixed period of time.
What are Liquidity Bonds?
Liquidity Bonds are a simple primitive unique to Cardano DeFi. They are built on and leverage Cardano’s well-evolved and distinctive staking system.
Put simply, Liquidity Bonds allow anyone to borrow or ‘rent’ ADA staking rights and associated staking rewards for a fixed period of time. Bond ‘issuers’ (borrowers) deposit interest into a smart contract, while bond ‘buyers’ (lenders) deposit ADA into a smart contract. Borrowers control the staking delegation of a lender’s ADA, can attach any stake key, delegate wherever they please, and receive all staking rewards associated with the borrowed ADA.
Substantial collateral is not required from borrowers as with normal loans. The only requirement of borrowers is to pay interest into a bond to compensate lenders for the staking rights to their ADA. Lenders do not actually give borrowers custody of their ADA.
All interest earned by lenders for the right to their ADA stake key/delegation is paid into bonds by borrowers. Every ‘bond issuer’ or borrower fully controls the stake key to all borrowed ADA and can accumulate the associated staking rewards if they choose. Borrowers receive an Ownership NFT that gives them control over the staking key for borrowed ADA. This Ownership NFT can be transferred, sold, etc. to anyone who wishes to pay the required interest and meet the predefined terms for the duration of the bond.
This enables anyone to borrow ADA delegation for any purpose by simply paying interest into a bond.
Born out of the steadfast belief in Cardano and DeFi, the Optim Protocol and Optim DAO stand as a testament to our vision of financial inclusion and innovation.
To this end, the Optim Finance team has endeavored to create structures that promote an efficient, equitable and well-functioning decentralized organization.
Optim governance is intended to be an ever-evolving entity, continuously progressing towards a more efficient decentralized future. At first, the Optim DAO (ODAO) will function similarly to many other DAOs on Cardano. However, as the protocol progresses the ODAO will adapt and enact more evolved governance mechanisms and structures.
The initial ODAO structure is straightforward. OPTIM token holders directly vote on proposals to be enacted by the Optim Core Team.
At the heart of Optim DAO are the principles essential to achieving the ambitious goals of this project:
Transparency: In this ecosystem, clarity reigns supreme. All actions and information shared within the community echo this principle of maximum transparency.
Immutability and audibility: Our actions are set in stone, immutable and verifiable. Every action is subject to the scrutiny of public accountability.
Open forum: An open dialogue is maintained where every voice, every idea counts and is heard. The team is committed to transforming the collective will of the community into successful action.
The OPTIM token powers the project’s ecosystem and is an essential element in the protocol’s decentralization, distributing decision making, and aligning the incentives of its various participants.
The protocol of this ecosystem is controlled by a DAO (ODAO) through the project’s native token voting.
Decisions voted by the ODAO are implemented by Optim Labs under the direction of the project’s native foundation. To make proposals to the ODAO and take part in the vote, you need to hold one of the ecosystem’s native tokens.
OPTIM is a Cardano native token with a set supply of 100M.
The holders are entitled to several rights and benefits, with the two primary being:
1. The right to formulate and cast votes on governance decisions
2. Potential fee sharing of Optim protocol revenue if ODAO initiates fee switch
The OPTIM token in a nutshell:
The OPTIM token is the native governance and utility token of this ecosystem. It is designed to bring decentralization, empowerment, and utility to its holders. By powering Optim Finance, the token ensures holders an active say in the ecosystem’s evolution, control over development and decision-making, and meaningful utility within the protocol.