What is the strategic collaboration between Ankr and OnX Finance?
OnX Finance creates use cases in DeFi for Internet Bonds from Ankr, enabling users to easily benefit from enhanced yield on top of Internet Bonds’ staking rewards.
What is the connection to Internet Bonds?
Internet Bonds solve one main problem from Proof-of-Stake protocols, which is capital inefficiency. Although Proof-of-Stake is more energy-efficient than Proof-of-Work protocols, the inability to re-using the value of staked tokens is a capital inefficiency that Internet Bonds aim to solve by providing more liquidity, enabling composable passive income (earn more rewards on top of staking rewards), borrowing against Internet Bonds, and creating stablecoin backed by Internet Bonds.
The purpose of OnX Finance is to make this vision a reality, while at the same time using the benefits of its platform for other collateralized tokens earning yield.
One of the most appealing features of getting more yield on top of staking rewards from Internet Bonds is that it enables low impermanent loss liquidity mining (e.g. aETHc/ETH). OnX Alpha vaults enable any DeFi user to further enhance yield depositing Liquidity Pool tokens through automated yield farming strategies.
What are collateralized tokens?
Collateralized tokens are:
- Internet Bonds
- Liquidity Pool tokens
- Vault tokens
- Stablecoins fully backed by tokens
- Tokens earning lending interest
- More generally, any tokens earning yield and fully collateralized
What’s the benefit of having a second token (onS)? Why are two governance tokens necessary?
onS is the governance token of onStable (formerly onSynthetics), which was a project within OnX Finance. The initial purpose was to enable algorithmic stablecoins, and the project shifted its purpose to become a stablecoin backed by Internet Bonds, creating utility to stablecoins through OnX lending.
As the collateral, Internet Bonds, generate yield, onS token holders will decide through governance how the excess yield should be distributed (e.g. incentivize onETH lending, incentivize onETH and onS liquidity, etc.)
How do you collateralize your Internet bonds?
You can collateralize aETHc in OnX Finance and borrow ETH against collateralized aETHc. The loan to value ratio is 75%.
OnX Lending v2 aims to enable margin lending for Internet Bonds.
When will Polygon bonds launch on StakeFi?
It will be expected in October 2021.
What are the OnX plans for the upcoming months?
- Enable vaults on Polygon network
- OnX Lending v2 to enable margin lending for Internet Bonds
- Include onETH to OnX Lending v2
- Expand onStable to other Internet Bonds (e.g. Polkadot, Kusama)
- Connect OnX Finance to at least another network on top of Polygon (e.g. Avalanche, BSC being considered)
- Combine OnX Lending v2 and OnX alpha vaults to enable new products (Leveraged Internet Bond Certificates)
What are the OnX vault strategies?
We are looking for new products and new opportunities, more specifically using leverage within new vault strategies.
What is the Ankr Token Utility?
Rewards for an Ankr funded node are paid out in ANKR to incentivize network participants.
ANKR tokens are a way to commit to the future progress of the Ankr Network. If you want to have a say in the network, ANKR holders can participate in governance and vote on upgrades and technical changes to the network. More utility will come with StakeFi Alpha.
Will the future multi-chain products introduce bridges?
We are trying to make that bridging experience easier. The bridge when you have liquidity on multiple exchanges you need to have large amounts to incentivize liquidity on different dexes.
Will I need to unstake my ANKR from OnX to use the StakeFi Alpha options?
Do you think to remain an anonymous team or in the near future do you think to reveal the OnX team identity?
Mike’s statement: We will remain semi-anonymous for the safety of the project and its users. Anything can change with regularity and safety. Once governance is activated, the community should be able to decide the turn of these events. But anything is possible.