What is the OpenDelta Perpetual Bond?

The OpenDelta Perpetual Bond (OPB) is an on-chain instrument that accrues value indefinitely. Even though its principal value is denominated in USD, it exists entirely in the crypto realm without any ties to the legacy banking system.

OPB is built on top of a synthetic dollar called USDO. When OpenDelta hedges BTC with a delta-neutral strategy, it creates a position that is price-stable in dollar terms. This product is known as a synthetic dollar, which we call USDO.

USDO on its own offers synthetic exposure to USD-denominated value without the need for fiat rails. But because the method used to create USDO produces yield via the derivatives market funding rate, USDO can also be converted into OPB, which allows the holder to access this yield.

While USDO can be utilized on its own, OPB is a secondary token that incorporates the product’s yield. OPB can only be created using USDO– you can think of OPB as a “staked” version of USDO that allows USDO holders to access yield. But there are no staking requirements or lockups— yield simply accrues to the token holder automatically.

Once a user converts USDO to OPB, they can move OPB on-chain, transact with it, utilize it in DeFi and much more without having to stake or lock their funds. OPB creates an extremely efficient way to bring this native yield on-chain, allowing users to automatically and programmatically earn yield just by holding the token.

OPB offers the best of both worlds– users’ initial capital is held stable and protected via the hedging mechanism, and they earn sustainable, market-driven yield from the basis trade.