Crypto

OmiseGO and MakerDAO Collaborating for a Decentralized Financial Future

Martin Young | April 11, 2018 | 10:00 am
Crypto

OmiseGO and MakerDAO Collaborating for a Decentralized Financial Future

Martin Young | April 11, 2018 | 10:00 am

When the common goal is the same, in this case financial decentralization, collaboration can often help to achieve it faster. MakerDAO and OmiseGO have teamed up to consolidate their roadmaps towards achieving a financial revolution.

OMG and Maker Going Forward Together

Announcements came from both teams yesterday confirming the partnership and continued efforts to work towards their common objective. Maker, a decentralized autonomous organization (DAO), offers a cryptocurrency, DAI, which is price stabilized against the US dollar in a similar way that Tether is. The Dai Stablecoin System is a decentralized platform that runs on the Ethereum blockchain, and its creators seek to minimize price volatility.

OmiseGO is a currency-agnostic decentralized exchange which will allow users the freedom to exchange and manage any digitized asset. There have already been a number of successful partnerships in Southeast Asia where the OMG team are based. By working together the two projects intend to use a stablecoin to avoid the wild price fluctuations many of the other cryptocurrencies endure.

Unlike most regular stablecoins which are centralized, Dai is decentralized with its issuance and value transparently linked to assets held in smart contracts. It provides the perfect opportunity for OMG which is striving to provide a decentralized crypto exchange.

In a blog post the OmiseGO team stated;

“We’re thrilled to say that Dai will be available on the OMG DEX. OMG network users will have the option to hold, send and trade against Dai from day one, gaining the benefits of a stabilized asset without having to rely on a centralized third party to guarantee its viability. With a decentralized stablecoin held on a decentralized exchange, your funds can’t be lost or revoked due to a single third party’s error, fraud or failure to thrive.”

Maker meanwhile shared the sentiment and posted on their Medium page;

“OmiseGO shares our passion for building a robust ecosystem and is in the process of developing a wallet SDK and DEX that will be vital to the utility of the overall network. The live OMG network will be a performant and secure proof-of-stake network which will enable high transaction throughput at a low cost. Today, we are excited to share two announcements on developments between Maker and OMG.”

The OMG token will also be used as collateral for issuing Dai and be part of the foundation for the stablecoin in its ongoing milestones. Currently only Ether can be used to create Dai. The marriage of philosophies between these two organizations emphasizes the real drive behind the cryptocurrency industry – total monetary freedom and decentralization from financial institutions and profit driven exchanges.

 

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