Ukrainian Startup OpenDelta to Issue BTC-Backed Synthetic Dollar

Synthetic assets mimic the prices of other assets, such as fiat currencies, commodities, and crypto, without directly holding them. Instead, they use blockchain, derivatives, and collateral mechanisms to follow the prices of the linked assets. This way, synthetic assets don’t depend on traditional financial systems to derive value. 

OpenDelta’s USDO follows these principles. On its X page, the company explains  that users will be able to mint USDO by providing Bitcoin as collateral. Having stable value, USDO will protect token holders from price fluctuations. OpenDelta won’t keep user deposits directly but will use a multi-sig wallet safeguarded by institutional-grade custodians. This means that the platform won’t solely be in control of the fund’s management; trusted third parties will ensure the security. Besides using USDO as a stable-value asset on the blockchain, users will be able to earn profit through the derivatives market funding rate.

USDO will operate on different Bitcoin-based protocols, allowing its holders to take part in DeFi activities, including borrowing, lending, and staking.

OpenDelta is a rising startup with an expanding team. The company’s social media posts show that they are in search of new specialists. According to Forbes, OpenDelta now comprises nine people, some of whom work from Ukraine. The founders of the startup are Nick Schteringard and Konstantin Wüncher. 

The project hasn’t announced USDO’s launch date yet. As of May 20, people interested in minting USDO can join the waitlist on the opendelta.com website. First, USDO will go live on Bitcoin’s mainnet via the Runes protocol and then be expanded to different Layer2 platforms.

Both synthetic assets and Bitcoin-native DeFi are hot topics in crypto. In February, the Ethereum-based USDe synthetic dollar developed by Ethena entered the market. USDe gained a lot of attention, reaching $2 billion in market cap in two months. However, the asset is in the early stages and is facing challenges in maintaining stable value.

As in the broader DeFi spectrum, synthetic assets also play an important role in Bitcoin DeFi. They serve as stable value assets without relying on traditional finance. These factors make USDO an interesting concept to look out for. However, how well it will perform and how much demand it will have are yet to be seen.