Main difference with other stable assets

Otto is pioneering a truly unique and innovative model to back its stablecoin, as it is entirely supported by a diverse portfolio of volatile assets and derivatives, instead of fiat currencies. Additionally, since the protocol's cash flow is completely delta-neutral, there is no requirement for USDO to be over-collateralized. Each USDO token is backed by an equivalent USD value in other cryptocurrencies, ensuring 1:1 parity.

When a user deposits collateral on Otto, it becomes part of the protocol's holdings, and the user receives USDO tokens in return. This experience is similar to that of a swap, where ownership of the collateral is transferred to Otto.