In the long term, the price of ONDO may rise to as high as $10.

Real World Asset, abbreviated as RWA projects, is another area in the blockchain world after the Bitcoin ecosystem, BRC-20, ARC-20, and Cosmos airdrops. Similar to Depin, these are applications of blockchain in real-life scenarios. RWA represents another growth point for blockchain, following DeFi.

Ondo Finance is a highly promising project in the RWA field. It primarily involves bringing bond ownership onto the blockchain, including U.S. short-term bond funds, investment bond funds, and high-yield corporate bond funds.

For example, with U.S. short-term bonds, investors deposit USDC into Ondo Finance's token, OUSG. 1 OUSG is equivalent to 102 USDC.

Ondo Finance sells the USDC used to purchase bonds on Coinbase for dollars and then buys bonds from U.S. bond ETF companies. After the bonds mature, the principal and earnings will be used to purchase more short-term bonds, increasing the OUSG held by investors.

Investors can sell their OUSG or redeem it on Ondo Finance. Redemption will yield USDC, and the corresponding OUSG will be burned and destroyed.

For each transaction, Ondo Finance charges a management fee of 0.15%. As of January 2024, Ondo Finance's total U.S. bond holdings have reached a whopping 760 million USD. Conservatively estimated, the annual profit is at 1.14 million USD.

Ondo Finance plans to increase its fund volume to 100 billion USD, which is at least a 100-fold increase from the current basis.

OUSG Collateralized Lending

Holding OUSG allows you to engage in collateralized borrowing of USDC on Flux Finance. Currently, the annual interest rate for borrowing USDC against collateralizing OUSG on Flux Finance is 4.96%, while the interest rate for collateralizing USDC is 4.36%. In other words, Flux Finance allows you to earn a 0.6% spread per transaction through lending. Flux Finance is Ondo Finance's lending platform.