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Introducing OFD by the Oracle Free Dollar Protocol – Swap & Liquidity Pools now available on Stabull DEX

Published On: Jul 15, 2025•
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As DeFi expands and USD-backed stablecoins become more common across blockchains, a new decentralized alternative has emerged. Forked from the Frankencoin Protocol, the Oracle Free Dollar (OFD) offers a fresh approach to USD stability—without relying on centralized price feeds or issuers.

In this article, we take a closer look at OFD, a US Dollar–pegged stablecoin now available on Stabull’s decentralized exchange (DEX).

What is OFD?

OFD is a fully decentralized, USD-pegged stablecoin developed by the Oracle Free Dollar Protocol, originally launched in Switzerland. Unlike traditional fiat-backed stablecoins, OFD maintains its peg without FX oracles.

The protocol ensures a 1:1 USD value through overcollateralized positions in various cryptocurrencies. These reserves are managed by Pool Share Token holders, who govern the system and uphold its stability across multiple supported blockchains.

Key Features of OFD

  • Blockchain Compatibility: OFD is currently deployed on Ethereum, Polygon, and BNB Chain, ensuring broad accessibility across major DeFi ecosystems.
  • Transparency: All collateral positions and system data are fully on-chain and publicly viewable, ensuring complete transparency for users and governance participants.
  • Collateral & Minting: Pool Share token holders govern which assets are accepted as collateral. OFD can be minted for predefined durations using overcollateralized positions, with a minimum backing of 100% per 1 USD issued.
  • Governance: Pool shares represent equal shares of the underlying system equity. A Dutch auction system handles undercollateralized positions, and any holder with more than 2% of the supply can veto critical decisions.
  • Regulatory Compliance: OFD is exempt from MiCA regulation due to its decentralized architecture, lack of a central issuer, and oracle-free design.
  • Utility: OFD can be swapped 1:1 with USDC on the platform and is compatible with a wide range of DeFi applications, including trading, payments, and yield farming.

OFD on Stabull DEX

With OFD now available on Stabull, users can access a fully decentralized, community owned and controlled USD-based stablecoin, and utilize it in day-to-day transactions with full on-chain transparency..

The OFD pool deployed on Stabull is:

Polygon OFD/USDC Pool: 0x5Cc08cE8fD0F66d83CB39300B268602514E2926B

Benefits of the Integration

  1. Seamless Swapping Stabull DEX enables fast, low-cost swaps between OFD, USDC, and other supported stablecoins and RWAs on the Polygon network—ensuring efficient on-chain forex movement.
  2. Low Fees and Fast Execution With its advanced AMM design and off-chain USD oracle, Stabull dynamically re-centers liquidity to reduce slippage. Combined with a minimal 0.15% swap fee, users enjoy fast, trustless, and cost-effective transactions.
  3. Liquidity Pools and Earning Opportunities OFD holders can provide liquidity on Polygon and earn 70% of all OFD trading fees. Plus, participants in Stabull’s Liquidity Mining Program earn extra rewards in $STABUL, making it an appealing option for maximizing DeFi returns.

Conclusion

The integration of OFD (Oracle Free Dollar) into Stabull strengthens its commitment to building the most diverse stablecoin ecosystem in DeFi. With OFD, users gain 24/7 access to a decentralized, oracle-free USD alternative—unlocking new possibilities for on-chain transactions, FX trading, and yield generation.

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