Orion Protocol has launched USDo stablecoin
Orion Protocol has announced USDo token, Orion’s dollar-pegged stablecoin. Minted by staking ORN, USDo will become the primary base pair across Orion Terminal, Orion’s flagship solution providing decentralized access to centralized and decentralized liquidity in one place.
USDo can be used for trading and additional transactions within Orion Terminal. When users stake ORN or ORN LP tokens on Orion Terminal, they will be able to mint USDo – collateralized using the staked ORN. USDo will become a primary base token of trading pairs on the Orion Terminal.
Minting USDo is conducted at a (to be defined) ratio on the staked collateral: for every $X USD worth of ORN the user stakes (the collateral), they are able to mint $1 USD worth of USDo (equivalent to 1 USDo). Similar to traditional stablecoin models, the collateral put up for USDo will be monitored by Orion Oracle to continuously monitor value of the newly minted tokens.
Rather than only impacting collateralized ORN if it drops in value, Orion will reward holders of USDo if their staked collateralized ORN rises in value: holders have the ability to ‘rebase’ their position depending on price movement. When this rebase happens, the user will have the option to mint additional stablecoin based on the same X-1 ratio. The strike price for liquidation is now raised if the user increases their stablecoin exposure.
USDo will become the primary base pair on Orion Terminal and will be entirely fueled by ORN. Orion’s stablecoin will be integral to the project, allowing ORN holders to maximize their capital efficiency within the Orion ecosystem. This further the adoption of ORN to mint USDo, driving an increase in TVL on Orion Terminal.
Orion Protocol recently launched its native ‘pre-staking’ solution on Orion Terminal via Orion Pool. Less than a week since launch, a 10 million ORN has been locked (~$55 million dollars): 35% of circulating supply.