Introduction to ODX
ODX is a cross-chain liquidity protocol designed to bring assets from any blockchain into Sonic, creating a more capital-efficient DeFi ecosystem. Think of it as a liquidity hub for the multi-chain future.
Why ODX?
ODX is a mint-burn cross-chain protocol that enables any asset from any supported blockchain to be used seamlessly within the Sonic ecosystem.
The ODX Thesis
Isolated Liquidity
Assets are trapped within their native blockchains, limiting their utility.
Capital Inefficiency
DeFi opportunities exist across chains, but assets can’t easily move to capture them.
Yield Optimization Complexity
Users shouldn’t have to choose between earning yield and using their assets in DeFi.
By solving these issues, ODX makes all assets productive while maintaining their yield-generating potential.
What Problems Does ODX Solve?
Ecosystem Enhancement
Enhancing Sonic’s Ecosystem with Premium Yield-Bearing Assets
Sonic already thrives with over $1B TVL in its vibrant ecosystem. ODX complements this success by bringing sought-after assets like staked ETH, staked SOL, etc. from other blockchains into Sonic.
By seamlessly integrating these premium assets, ODX helps Sonic expand its offering, creating even more opportunities for DeFi innovation and attracting sophisticated users looking to maximize capital efficiency.
Our Solution: The ODX Protocol
ODX is a mint-burn cross-chain protocol utilizing secure vaults and economic security. It introduces several key innovations:
- Assets are held in vaults across supported blockchains
- Validators secure the network through staking, with slashing penalties for misbehavior
- Anyone can verify vault balances by running verifier nodes
- Deposited assets continue generating yield even while their xAsset counterparts are being used on Sonic
- Depositors earn from swap fees (when others redeem) and native staking yields (when applicable)
- This eliminates the opportunity cost of moving assets cross-chain
- For every asset deposited, an equivalent xAsset is minted on Sonic
- xAssets are always redeemable 1:1 for their underlying assets
- This maintains price stability and trust in the system
- xAssets can be used throughout Sonic’s DeFi ecosystem:
- As collateral in lending protocols
- In liquidity pools and AMMs
- For yield farming strategies
- In vault strategies and other DeFi applications
By bringing more assets into Sonic while maintaining their yield-generating potential, ODX creates a more vibrant, liquid, and capital-efficient DeFi ecosystem for all participants.