What even are Open DAO Cash Boxes? Let's break it down!
OpenDAO.io have invented a new way of trading on DeFi, which functions like limit orders on an exchange, and removes the risk of impermanent loss that comes with DeFi liquidity pools.
Cashboxes, they call them, and anyone can deploy one.
You just set a token pair (e.g - $DAI:$OPEN), how many one will buy of the other, and you're done!
The boxes function on a 3 pronged system.
You have the two crypto tokens you're looking to trade between, and a 3rd 'middle man' - the CashBox Token.
It basically works like this:
- Deposit $DAI
- Recieve CashBoxTokens (these are like your receipt, a proof of stake)
You can absolutely just hold these, maybe you're looking at the market and wanting to long or short it in near future.
When you want to though, just redeem the CashBoxTokens to receive the other token pair ($OPEN, in this example)
To summarise:
(Tokens are examples, all ERC20 is supported)
- Deposit $DAI.
- Recieve Cashbox Token.
- Redeem Cashbox Token for $OPEN.
The beauty of this system is the prices are static, set by the box creator.
With Ethereum 2.0 launching in the coming weeks, deploying your own CashBox couldn't be cheaper.
This is going to be a real game changer.
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Check out these links for more info on what OpenDAO are building:
?? OpenDAO.io
? Telegram
?? Medium
? Youtube
