Abstract: OpenEden - Tokenized Real-World Assets on Cardano

Project Name:

OpenEden - Tokenized Real-World Assets on Cardano

Submitted By:

OpenEden

Objective:

The primary objective of this proposal is to integrate OpenEden’s USDO rebasing, yield-bearing stablecoin into the Cardano blockchain. This integration aims to drive the adoption of real-world assets (RWA) on Cardano, enhance its DeFi ecosystem, and facilitate institutional engagement with Cardano-based financial products.

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Current OpenEden Products & Advantages

• USDO Stablecoin: A tokenized stablecoin backed by U.S. Treasury Bills that provides low-risk, real-world yield directly on-chain while ensuring compliance with financial regulations.
• Institutional Custody & Compliance Framework: Ensures tokenized assets are held with regulated custodians, supported by Chainlink Proof-of-Reserve for transparency and compliance with international regulations.
• Cross-Chain Asset Interoperability: Enables seamless transfer of USDO across Ethereum, with planned integration into Cardano for broader accessibility.
• DeFi Yield & Liquidity Solutions: USDO can serve as collateral in DeFi platforms, offering stable yield compared to volatile crypto assets, expanding DeFi use cases on Cardano.

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Strategic Benefits of OpenEden on Cardano

• Bringing Real-World Assets (RWAs) to Cardano: OpenEden specializes in tokenizing U.S. T-Bills, offering low-risk, stable yield products that can attract institutional and DeFi users.
• Boosting Cardano’s DeFi Ecosystem: The integration of USDO will enhance lending protocols, decentralized exchanges (DEXs), and yield farming opportunities, increasing Total Value Locked (TVL) on Cardano.
• Enhancing Institutional Adoption: OpenEden’s regulatory compliance ensures alignment with institutional standards, making Cardano an attractive option for TradFi firms.
• Strengthening Cardano’s Stablecoin Infrastructure: USDO-backed stablecoins will support stablecoin growth on Cardano, fostering liquidity and market stability.
• Cross-Chain Interoperability: OpenEden will speak with partners alongside Cardano to enable seamless bridging of assets between Ethereum, Base and Cardano, attracting liquidity from multi-chain users.

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Alignment with Cardano’s Programmable Assets

• New Class of Programmable Assets: USDO introduces yield-bearing stablecoins backed by tokenized U.S. Treasury Bills.
• UTxO Intent Signatures: Secure, conditional swaps enable decentralized exchanges (DEXs) on Cardano.
• Custodian-Regulated Stablecoins: Supports stablecoin expansion, enhancing liquidity for retail and institutional users.

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Proposed Utilization of 3,840,000 ADA

The requested 3,840,000 ADA ($1,920,000) will fund technical integration, compliance, and user adoption efforts. Key allocations include:

• Smart Contract Development (1,100,000 ADA / $550,000): Porting to Plutus, testing, cross-chain bridge development, and security reviews.
• Security Audits & Compliance (500,000 ADA / $250,000): Smart contract audits, regulatory research, and Chainlink Proof-of-Reserve integration.
• Infrastructure & Hosting (240,000 ADA / $120,000): Validator node operations and OpenEden Vault hosting.
• Marketing & Community Growth (500,000 ADA / $250,000): PR, hackathons, social media outreach.
• Liquidity Incentives & Rewards (1,200,000 ADA / $600,000): Staking rewards, DeFi incentives, and partnerships.
• Operational & Team Costs (300,000 ADA / $150,000): Hiring developers, compliance officers, and support staff.

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Implementation Roadmap

• Phase 1: Research & Development (0-6 months) – Develop and test USDO smart contracts for Cardano. Firstly scoping out the ability to bridge USDO from Ethereum/Base which is expected some time in 2025
• Phase 2: Security & Compliance (6-8 months) – Conduct audits and regulatory alignment.
• Phase 3: Deployment & Liquidity Incentives (8-9 months) – Launch USDO on Cardano Mainnet and introduce incentives.
• Phase 4: Expansion & Institutional Onboarding (9-12 months) – Scale integration with stablecoins, lending protocols, and institutional investors.

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Conclusion

Integrating OpenEden’s USDO into Cardano will bring tokenized real-world assets (RWAs) to the ecosystem, enhance DeFi capabilities, and drive institutional adoption. The 3,840,000 ADA grant will enable a secure, scalable deployment, delivering long-term value to Cardano’s financial ecosystem. OpenEden looks forward to collaborating with the Cardano Foundation and community to bring this vision to life.

1. Lack of Stable, Low-Risk Investment Products in DeFi

DeFi ecosystems, including Cardano, predominantly offer volatile and high-risk assets, limiting access to low-risk investment options. OpenEden aims to introduce USDO, a stablecoin pegged to the U.S. dollar and full backed by U.S short term treasury bills, providing a stable and secure yield product that attracts a broader range of investors, including institutional players and conservative investors. By integrating USDO into the Cardano ecosystem, OpenEden ensures that participants have access to a low-risk, dollar-pegged stablecoin, ideal for stable returns in a volatile market.

2. Limited Institutional Adoption of DeFi

Despite the growth of decentralized finance, institutional investors are often reluctant to participate due to concerns about security, compliance, and asset transparency. OpenEden’s focus on regulatory compliance, auditability (via Chainlink Proof-of-Reserve), and partnerships with regulated custodians will help bridge the gap, offering institutional-grade security for investors within the Cardano ecosystem. By utilizing USDO, which is designed with transparency and stability in mind, OpenEden creates a reliable, institutional-grade stablecoin solution to enhance confidence in the DeFi space.

3. Cross-Chain Liquidity Fragmentation

The current DeFi landscape on Cardano, like other blockchains, suffers from liquidity fragmentation and lack of interoperability with other ecosystems like Ethereum. OpenEden’s USDO cross-chain compatibility will allow it to flow seamlessly between blockchains, enabling liquidity to move across networks and creating a more integrated DeFi ecosystem. By utilizing a widely accepted and stable asset like USDO, liquidity can flow more efficiently, benefiting users and enhancing the global interoperability of DeFi.

4. Underdeveloped Real-World Asset (RWA) Adoption on Cardano

While Cardano has made strides in building a scalable and secure blockchain, the adoption of real-world assets (RWAs) like government bonds and traditional financial instruments is still in its infancy. OpenEden aims to integrate USDO as a stable and reliable real-world asset within the Cardano ecosystem, bridging traditional finance with DeFi. The introduction of USDO provides a new asset class that enhances Cardano's financial offerings, attracting new users and investors who seek stability and simplicity.

5. Scalability Concerns in DeFi

DeFi platforms often suffer from scalability issues when dealing with volatile assets, leading to high transaction costs or network congestion. OpenEden’s focus on low-risk stable assets, like USDO, ensures that the growth of Cardano’s DeFi ecosystem can be achieved without putting undue strain on the network’s scalability. USDO’s stable value ensures that it can be transacted with minimal volatility, reducing the risk of congestion and enabling the introduction of new financial products without compromising the underlying blockchain's performance.

Attract New Users

OpenEden’s launched Bills Rewards program is set to benefit Cardano by incentivizing participation in DeFi activities. Users earn rewards through tasks, multipliers, and referrals, driving engagement and organic growth. By bridging traditional finance with DeFi, the program appeals to both conservative and DeFi-savvy investors, helping to expand Cardano’s user base. The Bills Rewards program is specifically designed to encourage the adoption and utilization of USDO, a yield-bearing stablecoin backed by tokenized U.S. Treasury securities.

Aligns with Cardano’s Core Principles

Security: Ensuring Institutional-Grade Transparency and Compliance

OpenEden’s issuance of USDO through a Bermuda Monetary Authority (BMA) licensed digital asset issuer ensures adherence to stringent regulatory standards. The reserves backing USDO, primarily consisting of U.S. Treasury Bills and reverse repurchase agreements, are managed transparently, providing security and trust for Cardano users.

Scalability: Expanding DeFi with Stable Yield Products

By introducing USDO, Cardano's DeFi ecosystem gains access to a stablecoin that offers daily rebasing yields. This addition can enhance liquidity, enable new collateralization options, and support yield farming strategies, all without compromising Cardano's scalable infrastructure.

Decentralization: Promoting Trust with a Decentralized Framework

USDO's structure, including its issuance by a regulated entity and backing by real-world assets, aligns with decentralized finance principles. Integrating USDO with Cardano's smart contracts can further decentralize asset management, reducing reliance on centralized financial intermediaries.

Supporting Cardano’s Vision for Financial Inclusion

USDO's design facilitates access to yield-bearing, stable digital assets, enabling everyday users to participate in DeFi activities on Cardano. This integration supports Cardano's mission to provide accessible and secure financial services globally.

Enhancing Cardano’s Real-World Adoption

The tokenization of U.S. Treasury securities through USDO bridges traditional finance and blockchain technology. This integration can attract institutional investors and traditional financial institutions to the Cardano ecosystem, increasing real-world use cases and adoption.

Boosting Cardano’s Ecosystem with Stable Assets

Incorporating USDO into Cardano offers a secure, low-risk asset backed by high-quality reserves. This addition enhances Cardano's financial offerings, providing a stable investment option that appeals to a broad range of investors and promotes ecosystem stability.

Driving Innovation through DeFi Product Integration

Integrating USDO with Cardano's blockchain can spur innovation within its DeFi ecosystem. USDO's features, such as daily yield rebasing and backing by real-world assets, enable greater liquidity, fractional ownership, and seamless trading, contributing to the development of a robust decentralized financial system on Cardano.

Aligning with Cardano’s Sustainability Goals

USDO's operation on Cardano's eco-friendly proof-of-stake protocol aligns with sustainability objectives. This synergy creates a low-energy solution for asset management, supporting Cardano's commitment to environmentally responsible financial technologies.

Catalyzing Growth and Ecosystem Value for Cardano

The introduction of USDO is poised to drive new economic activity within the Cardano ecosystem. Offering a secure, yield-generating stablecoin diversifies Cardano's value proposition, attracting more participants and fostering growth in the decentralized economy.

Implementation Roadmap

• Phase 1: Research & Development (0–3 months)
  Develop and test USDO smart contracts for Cardano. Firstly scoping out the ability to bridge USDO from Ethereum/Base using bridge providers, which is expected sometime in 2025.

• Phase 2: Bridged USDO on Cardano (3–4 months)
  Testing bridged version of USDO on Cardano relying on bridge providers.

• Phase 3: Security & Compliance (4–6 months)
  Conduct audits and regulatory alignment.

• Phase 4: Deployment & Liquidity Incentives (6–8 months)
  Launch USDO bridged version on Cardano Mainnet and introduce incentives. Scale integration with stablecoins, lending protocols, and institutional investors.

• Phase 5: Native Deployment of USDO on Cardano (9–12 months)
  Develop and test USDO native token on Cardano.
  → Repeat Phase 4 for native asset.

Phase 5 represents the target end state of USDO becoming a circulating native asset on Cardano.

Cost Breakdown by Milestone

100% of total ask: $1,920,000 / ADA 3,840,000

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Milestone 1:

30% of total ask: $576,000 / ADA 1,152,000
Focus: Research & Development + Deploying Bridged Asset on Cardano

• Smart Contract Development for Bridged Asset Deployment
• Smart Contract Development for Native Asset Deployment
• Security and Compliance
• Conduct Audits and Regulatory Alignment

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Milestone 2:

40% of total ask: $768,000 / ADA 1,536,000
Focus: Deploying Bridged Asset on Cardano

• Testing bridged version of USDO relying on bridge providers
• Cardano Ecosystem Protocol Integration of Bridged USDO and Liquidity Incentives
• Launching bridged version on Cardano Mainnet
• Scale integrations with stablecoins, protocols and institutional investors

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Milestone 3:

30% of total ask: $576,000 / ADA 1,152,000
Focus: Native Deployment of USDO on Cardano and Protocol Integration with Liquidity Incentives

• Develop, test and launch native USDO on Cardano Mainnet
• Scale integrations with stablecoins, protocols and institutional investors

Team Size: 5

• 2x – Plutus/Haskell Developers
• 2x 0.5 FTE – Existing Developers/Engineers
• 1x – Legal & Compliance for Regulatory Approvals
• 1x – Operations

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Expected Timeline

• 3–6 months to deliver USDO bridged asset on Cardano
• 12 months to deliver native USDO on Cardano

OpenEden’s Multi-Chain Deployment & TVL Growth

OpenEden has deployed TBILL natively on four chains since launching in March 2023. TBILL is available on:

• Ethereum
• Arbitrum
• Ripple
• Solana

The all-time high TVL was recorded at $152 million in October 2024.

Since launching USDO in March 2025, TBILL — which is used as the backing reserve for USDO — hit another all-time high of $192.5 million in April 2025.

Development Plan for USDO on Cardano

• Initial Development: USDO will initially be deployed as a bridged asset through bridge providers.

• Future Native Integration: When CIP113 is finalized, the development team will proceed to develop and test the composability of native USDO for DeFi and payments use cases.

USDO has 3 key requirements:

1. ERC-4626 Standard Support

   • $TBILL Token: OpenEden's TBILL Vault issues the $TBILL token, an on-chain ERC-4626 compliant asset that generates yield from U.S. Treasury bills. This token represents a share in the underlying assets held by the vault. readi.fi

   • cUSDO Token: OpenEden has introduced cUSDO, a non-rebasing token adhering to the ERC-4626 standard, to enhance DeFi compatibility.

2. Freeze/Seize Functionality

   • For adherence to regulatory standards.

3. Rebasing Mechanisms

   • To distribute the intended yield to the end user.