FAQ

Short answers to the questions people ask first.

#What is oUSD?

OMEGA's dollar: a stablecoin worth one US dollar. It's created when someone borrows against their ADA (or swaps USDCx in the peg module) and destroyed when the loan is repaid.

#Do I have to sell my ADA to borrow?

No. Your ADA is locked in your own loan and stays staked, so its rewards keep coming to you. Repay and it's all yours again.

#What does a loan cost?

A borrow fee of 6% a year at launch, on what you borrow, fixed for 90 days at a time. No opening fee and no penalty for repaying early. See The borrow fee.

#How much can I borrow?

Up to 40% of your ADA's value, from $100. See Borrowing oUSD.

#What happens if ADA's price falls?

If your loan reaches 70% of your ADA's value, part of your ADA is sold to repay about half of it, and you keep the rest. Add ADA or repay some oUSD to stay safe. See Liquidations.

#Where does the yield come from?

From real fees: the borrow fee, the peg module's swap fee and liquidations. No running costs are taken out. OMEGA rewards come on top, from a budget that falls each year.

#Who controls my funds?

Only your wallet. The contracts can't be changed once live, and nobody, the OMEGA team included, can move your funds.

#Can OMEGA freeze my loan?

No. The pause can only stop new borrowing. Repaying, adding ADA, closing your loan and withdrawing from the stability pool always work.

#Can I redeem oUSD for ADA?

Not directly: OMEGA has no redemptions, so nobody can take your ADA by redeeming oUSD against your loan. oUSD holds its dollar through the peg module, borrowers repaying when it's cheap, the borrow fee and the stability pool.

#Is it audited?

It will be, by independent Cardano specialists, before it launches on mainnet. See Contracts and audits.

#When is mainnet?

After the audits. Follow along on the testnet.