We're thrilled to announce Collar Protocol’s deployment on Omni Overdrive, ushering in a new era of financial possibilities in the DeFi space. Collar Protocol has chosen Omni as the platform to deploy the first public version of their protocol due to Omni’s ability to provide natively global access to liquidity from across the entire Ethereum ecosystem.
Collar Protocol, built by a team from Harvard and Goldman Sachs, offers high LTV (Loan-to-Value) loans without liquidations. Collar aims to redefine capital efficiency and user experience in the decentralized finance ecosystem through this innovative mechanism.
Omni Network is thrilled to empower Collar Protocol with its robust omnichain development platform, enabling it to operate across rollups and tap into broad-based liquidity pools. The DApp is publicly available today!
A Deeper Dive into Collar Protocol
The Problem Collar Solves
Capital efficiency remains one of the most pressing challenges in today’s DeFi ecosystem. Collar Protocol’s offering far surpasses any existing market solution regarding capital utilisation. Clients can use the Collar Protocol to take out loans against their crypto assets. This opens a plethora of new strategies, including hedging and leveraging on assets.
So, how does Collar accomplish this feat?
Collar Protocol employs a "prepaid variable forward" technology, a financial instrument used by wealthy individuals worldwide, like Mark Cuban. Unlike traditional systems that restrict this instrument to high-net-worth individuals, Collar Protocol democratises it through DeFi, allowing anyone to benefit from the sophisticated financial mechanisms usually reserved for the wealthy.
Your journey through the revolutionary landscape of DeFi starts here! With Collar Protocol deployed on Omni Overdrive, a world of high Loan-to-Value (LTV) loans without liquidations awaits you.
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Let's get you started.
Step 1 - Mint Your Omni Overdrive Launch Supporter OAT from Galxe
Kickstart your journey by minting your Omni Overdrive Launch Supporter OAT from Galxe.
Step 2 - Claim Testnet Funds from Faucet
After acquiring your OATs, secure your testnet funds here. This is where you'll claim your essential tokens like $OMNI, $USDT, $USDC, and $ETH on all integrated rollups via the faucet.
Step 3 - Connect Your Wallet on Collar Protocol
Proceed to Collar Protocol's interface to link your preferred wallet. The DApp will automatically add or switch to the Arbitrum Testnet Network as needed.
Step 4 - Initiate a Price Request
Hit the "Request Price" button and confirm via MetaMask. Remember, the UI will not update; however, your request has been processed.
You're essentially opening a dialogue with the Market Maker for a capital-efficient liquidation-free loan at this stage on Arbitrum, and it's getting sent over to the Omni Network.
Step - 5 Transition to Collar Alpha on Omni
You’ve asked the market maker for a price on Arbitrum, and now you are heading to Omni to close the deal.
It’s time to take your price request to the Collar Alpha on Omni and connect your wallet again.
Step - 6 Check and Finalize Your Deal!
Here you can see the deal the market maker has proposed on your original request on Arbitrum.
Review the Market Maker's proposal, click "Accept," then sign the transaction. Voila, you've successfully closed your deal!
Step - 7 Examine Your Vault
Before you wrap up, click on "Positions" to review your vault, a unique feature that showcases the loan you've just secured, which is available on Omni Network now.
Step - 8 Mint Your Collar Protocol Mission OAT
Finally, mint your Collar Protocol Mission OAT to celebrate the completion of your first mission in this paradigm-shifting ecosystem.
By following these steps, you are not just utilizing a DApp; you are part of a seismic shift toward a more inclusive, efficient, and secure financial world built by Collar Protocol on the Omni Network.
The deployment of Collar Protocol on Omni Network marks a significant milestone in DeFi’s journey toward capital efficiency, security, and accessibility. We aim to reduce the cost of financial trust and open doors to financial products traditionally reserved for the elite. Our joint efforts bring us a step closer to a more inclusive, efficient, and secure financial world for everyone.
About Collar Protocol
Collar Protocol is the first ever liquidation-free, capital-efficient borrowing protocol that empowers users with high LTV stablecoin liquidity against digital assets. This is achieved via a network of market makers using a proprietary hedging strategy, inspired by prepaid variable forward technology. Collar turns crypto wealth management from an oxymoron into a reality.
Collar is backed by several early-stage Angel investors spanning top institutions across TradFi and DeFi.
The Omni Network is a layer 1 blockchain built to connect all rollups. Using Omni, developers can build global applications that are available across all rollups. Secured through restaking $ETH, Omni is a next-generation blockchain leading the frontier in both security and functionality.
Omni is backed by $18M from prominent investors such as Pantera Capital, Two Sigma Ventures and Jump Crypto.