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YouHodler Now Supports OMG Network (OMG)

The YouHodler Team
May 20, 2021
OMG network logo

We are pleased to announce yet another wonderful addition to the YouHodler squad. As of right now, OMG Network (OMG) is live on the platform, making it the fifth new addition this week and the 31st overall.
With the new listing, YouHodler users can now use OMG for the following:

- OMG savings accounts (3% APR + compounding interest)
- instant OMG backed loans (LTV up to 90%)
- Turbo Loans
- Multi HODL
- Converting OMG with any crypto/stablecoin/fiat currency on the platform.

We hope you enjoy activating your OMG but first, let's learn a bit about our new family member.

What is OMG Network?

OMG Network, formerly known as OmiseGo, is a layer-2 scaling solution. The project is built on top of the Ethereum blockchain. Their goal is to allow users to transfer both ETH and ERC20 tokens faster and cheaper via their network than on the Ethereum blockchain.

The network uses the Proof of Authority consensus algorithm to improve its speed. We all know about Proof of Work, which is a slow consensus algorithm because all nodes in the network have to agree on the current state of the blockchain. On the other side, a Proof of Stake network improves transaction confirmation time but doesn't exactly solve the scalability problem. 

For that reason, Proof of Authority offers a more efficient alternative as can increase the number of transactions even further. Instead of staking coins, node validators “stake” their reputation. A Proof of Authority blockchain uses a limited number of arbitrarily selected trustworthy entities to secure the chain. As only a few nodes have to agree on transactions, it drastically improves the number of transactions these nodes can verify per second. Why? There’s less communication overhead between 100 nodes than a Proof of Stake network that consists of 1000 or more validators.

How does OMG Network improve scalability?

OMG Network further improves their scalability by grouping transactions off-chain into a merkle tree before sending the root hash of this merkle tree to the Ethereum main chain. In other words, the OMG Network processes thousands of transactions, and it will periodically update the Ethereum main chain on the current state of their network by grouping multiple transactions into a single state update. Therefore, it’s also a cheaper alternative as you only have to pay for a periodic transaction to the Ethereum mainnet. 

If you are a big fan of OMG Network, you can use your OMG tokens with YouHodler’s savings accounts to earn a 3.0% APR. On top of that, OMG is available for classic loans, Turbo Loans, and Multi HODL.

DEPOSIT OMG NOW

About the Author
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The YouHodler Team is the collective mind of the platform. It's a hive of creativity and diversity in the form of one singular blog author. We are united as one.

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