Definitions of the terms O2O Research uses across stablecoin treasury yield, niche private credit onchain and RWA vault research. Each term has a permanent link.
O2O stands for onchain to offchain (on-chain to off-chain): onchain capital to offchain yield. In O2O Capital Partners' name, it describes the route capital will take into offchain private credit.
Base yield is the part of a vault's return paid by borrowers as interest; incentive yield is a reward paid on top, often in tokens and often with an end date.
The headline yield includes a temporary reward. When the reward ends, only the base yield paid by borrowers remains. Illustrative.
Fixed-rate onchain lending is borrowing and lending onchain at a set rate until a set maturity; variable-rate markets instead reprice as utilization changes.
A fixed rate holds until a set maturity; a variable rate reprices as utilization, the share of deposits currently borrowed, changes.
Non-crypto-correlated yield is a return whose source, such as invoice payments or lease rents, does not move with crypto prices or crypto borrowing demand.
Yield from invoice payments or lease rents stays steady while yield tied to crypto prices and borrowing demand swings up and down. Illustrative shape with no data.
An onchain allocator is an institution that holds capital onchain and allocates it to yield products, such as a DAO treasury, a vault curator or the Earn team at a fintech.
Institutions holding capital onchain, such as DAO treasuries, vault curators and fintech Earn teams, allocate it to yield products.
SOFR, the Secured Overnight Financing Rate, is a benchmark for overnight dollar borrowing secured by US Treasuries, published each business day by the Federal Reserve Bank of New York.
SOFR measures overnight dollar borrowing secured by US Treasuries and is published each business day by the New York Fed.
A stablecoin treasury is the stablecoin balance a DAO, protocol, company or fintech holds for operations and reserves, managed for safety, liquidity and yield.
A stablecoin balance held for operations and reserves, managed for safety, liquidity and yield.
Stablecoin yield is the return earned on stablecoins from lending, tokenized Treasuries, private credit or reward programs, usually quoted as an annual percentage yield (APY) after fees.
CIMA is the Cayman Islands Monetary Authority, the public body that registers and supervises investment funds and other financial services in the Cayman Islands.
Fund finance is lending to private equity and credit funds, such as subscription lines secured by investor commitments and NAV loans secured by fund assets.
Lending to private equity and credit funds, such as subscription lines and NAV loans.
An independent fund administrator is a third party that keeps a fund's books, calculates its NAV and handles investor records, separate from the fund's manager.
A third party, separate from the manager, keeps the books, calculates the NAV and handles investor records.
Music royalty financing is lending against, or buying, the future royalty income of music catalogs, repaid from streaming, performance and licensing income.
A lender lends against, or buys, a catalog's future royalty income, repaid from that income.
Niche private credit covers specialized, smaller segments of private credit, such as trade receivables, royalties and aircraft leasing, often short-duration and self-liquidating.
An originator is the bank or specialist lender that sources, underwrites and services a loan, and that may later sell the loan, or a share of it, to investors.
The originator sources, underwrites and services a loan, and may later sell it or a share of it to investors.
Private credit is lending by funds and other non-bank lenders directly to borrowers, arranged privately outside public bond and syndicated loan markets.
A qualified custodian is a bank, trust company or similar firm that meets legal standards for holding client assets, such as those in the SEC custody rule.
A firm that meets legal standards, such as the SEC custody rule, holds the client's assets.
A segregated portfolio company (SPC) is a Cayman Islands company that can create segregated portfolios whose assets and liabilities are kept apart from one another by law.
Tokenized private credit is private credit exposure, such as a loan, a pool of loans or a credit fund share, issued or recorded as tokens on a blockchain.
DeFi composability is the ability of a token to be used across other DeFi protocols, for example as collateral in a lending market or inside another vault.
A token can be reused across DeFi, as collateral in a lending market or inside another vault.
ERC-4626 is the Ethereum tokenized vault standard, a common interface for deposits, withdrawals and share accounting that lets other applications integrate any compliant vault.
One common interface for deposits, withdrawals and share accounting lets applications integrate any compliant vault.
ERC-7540 is an extension of ERC-4626 for asynchronous deposits and redemptions, so requests can settle later, which suits vaults holding real-world assets.
Requests settle later: a deposit or redemption is requested, waits to settle, then is claimed.