MEXC Renames Token Linked to United States Oil Fund

Ondo's tokenized product, USOon, is linked to the United States Oil Fund (USO), which invests in oil futures and related financial instruments. The economic chain of USOon is as follows: WTI Crude Oil → NYMEX WTI Futures → United States Oil Fund (USO) → Ondo's USOon → MEXC's OIL(USOON)/USDT.

While some may think that buying OIL(USOON) means owning physical oil, this is not the case. The token does not have a fixed quantity of oil for every token holder and its price is derived from USO share economics, Ondo's token structure, and secondary-market conditions.

The United States Oil Fund (USO) uses futures contracts to pursue its investment objective, which means that it may be subject to contango or backwardation. Contango occurs when later-dated futures are more expensive than shorter-dated ones, while backwardation occurs when shorter-dated futures trade above later-dated contracts.

Beginning January 1, 2026, USO will use a five-day roll period to rebalance approximately 20% of its relevant exposure per day during the roll. This is an important change from older explanations of USO's methodology and anyone analyzing OIL(USOON) in 2026 should take this into account.