Flux
Flux Finance is a decentralized lending platform built on Ethereum. The protocol launched in February 2023 and facilitates both lending and borrowing for its users. Users can either provide liquidity to earn interest or take loans against their collateralized digital assets. Flux Finance is a fork of Compound V2 with additional functionality to support both permissionless assets (USDC, DAI, USDT, etc.) and permissioned asset (OUSG).
For every deposited asset, users receive fTokens – ERC-20 tokens – which act as proof of their deposit and entitlement to the underlying asset. This mechanism ensures that interest is automatically compounded, allowing liquidity providers to observe a gradual increase in their fToken balance, reflecting earned interest. Furthermore, these fTokens can be used as collateral to take loans or be traded and integrated with other DeFi protocols.
ONDO is the native governance token of the platform that was built by the Ondo Finance team. Holding ONDO gives users a say in the future development and upgrades of the protocol while also allowing them to determine how the token should be distributed.
Safety is a cornerstone for Flux Finance. The initial Compound V2 code has undergone security audits by prominent blockchain security firms such as Trail of Bits and OpenZeppelin and has been formally verified by Certora. Flux has also undergone an independent audit by Code4Arena. Furthermore, to encourage the identification and reporting of potential vulnerabilities, Flux Finance runs a continuous bug bounty program with Immunefi.
OUSD's Flux strategy capitalizes on the yield opportunities the lending strategies provide, converting any harvested yield into stablecoins. These are then added to the OUSD vault, providing further yield for its holders.
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