Oh! Finance — A High Yield Aggregator That Delivers
Nothing in this guide constitutes financial advice. Before investing in anything let alone crypto you should seek the advice of an investment professional.
Disclaimer: I am personally invested in Oh!
Earning interest on collateral is nothing new in the world of finance. History can date the first instances of interest bearing assets as early as 2000 BC but we traditionally consider interest in the modern world to be associated with currencies like the Pound, Dollar and Euro. Legacy institutions like J.P. Morgan Chase and Bank of America have been offering interest accounts for over half a century now with fluctuating rates, often leaving trusting consumers at the mercy of unrealistic changes. Among financial opportunities in the legacy world, having services like savings accounts, bonds, and CDs have always been common options as they are a low risk service with “guaranteed” returns.
This has carried over into the crypto world, with many protocols offering interest bearing positions to help drive liquidity and project development. There has been no shortage of interest bearing projects but one statistic stands out more than the others — users tend to place money where there is the highest amount of interest given to them.
This is where Oh! Finance comes in.
Oh! Finance Overview
In short, everyone wants to earn more and this is exactly the main drive and purpose of Oh! Finance. The Oh! Finance ecosystem is a DeFi protocol that focuses on an optimised yield generation system. This protocol allows for an extremely high yield contrast by reducing risk and increasing volume exposure. By focusing only on yield optimisation, Oh! can focus on what matters the most when it comes to interest rate generation — higher rate returns.
The concept here is extremely simple — crypto protocols and legacy institutions have offered interest bearing accounts for years, decades, and more. This was great about 40 years ago when institutions did this as interest rates were approaching 20% on a savings account. Move forward to today and a “high yield” savings account is at a contrastingly low 1.5% with no signs of it going up anytime soon. DeFi protocols are a major improvement on this, Compound Finance for example offer twice as much at 3% on average, while more user friendly options like BlockFi offer 8.6% rates on USDC. Crypto.com also offer rates at 10%, making this significantly more than a traditional savings account or CD.
Oh! Finance focuses solely on getting the highest rate that it can so that users can maximise their potential returns. Some projects want to add extra features which creates more operational costs, creating less rates of return when it gets to the user. In addition, some protocols also have high gas fees associated with their use, which can also take away from potential returns. Oh! Finance is also to combat all of these issues by being an aggregator for users on their behalf and getting the best prices for them. They can achieve this through a method called Intelligent Auto-Compounding (IAC) which algorithmically chooses the best time to compound earnings. This mathematically creates higher returns over a given period of time. In addition, Oh! incorporates seamless fund management which aggregates the proper exposure across the DeFi space. Oh! Finance also saves on gas fees through a series of optimised smart contracts, creating a cheaper solution and giving the best return possible.
Oh! Finance is truly optimised for the highest returns through this series of features.
The Obvious Advantage of Oh! Finance
It stands to reason that optimised yield is the main feature of Oh! Finance and looking through some comparisons, it’s worth understanding why. While many legacy offers are minuscule and crypto protocols can be upward to 10%. The concept of generating the highest yield with Oh! Finance is also based on the advantages that can be seen within DeFi as a whole. Let’s examine this.
A DeFi protocol can be created and simply “exist”, but without any consumer interest, it doesn’t provide any value. However, even if a DeFi protocol wants to cater to users, it will have issues with liquidity — basically what this means is that a protocol needs to have a pool of resources in order to fulfil the needs of the users. This is similar to buying a coffee at a local cafe for £50 but the cafe doesn’t have any change. The cafe would either have to keep the £50 note or refuse service — resulting in bad service either way. The cafe needs to have change ready in case of an exchange.
Oh! Finance understands that all DeFi financial protocols need this liquidity, so they are able to offer these protocols through smart contracts. Oh! Finance checks projects like Aave, Compound, and Uniswap for example and finds the best rate automatically for you. When you lock in the funds, the smart contacts can do the work and get you that optimised rate.
Tokenomics and Earning
Oh! Finance uses strictly USDC on the Ethereum network to optimise their yields. Oh! Finance is eventually planning to launch on the Avalanche network as well, with UDSC.e deposits to be made available when that occurs.
Additionally, the protocol just released the $OH token, which is the utility token for the Oh! Finance project. There are several reasons for the involvement of the OH token:
- Liquidity Pool Creation: In order to maintain some stability for the protocol, Liquidity Pools need to be created. This will launch with the $OH-AVAX liquidity pair with more to follow.
- Rewards: $OH tokens can be rewarded to those that are holding liquidity on the Oh! Finance protocol. This helps encourage people to maintain integrity on the platform.
- Staking: The platform will also allow $OH tokens to be staked which gives a “boost” on the amount of interest gained on a locked amount of assets.
Oh! Finance launched with 100,000,000 $OH tokens that have a fair distribution, with 47% of the initial supply being made available at the time of initial sale, 25% being set aside for protocol incentives, while the rest is divided among community, investors, partnerships, and more.
When it comes to earring interest, there is a huge effort to make something great rather than something mediocre. Oh! Finance is a protocol that has all the right elements for the best yields.
By aggregating for the best rates, using algorithmic strategies like auto-compounding and fund management, to having a multi-chain system, Oh! Finance captures the correct elements to make a successful platform for high returns.
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