Decentralized autonomous organization-led web3 ecosystem Mantle partnered with tokenized monetary merchandise platform Ondo Finance to launch USDY, a yield-generating token backed by real-world belongings.
The yield-bearing token is being launched to the Mantle Community following the launch of the Ethereum Layer 1 to Mantle Layer 2 bridge for USDY, in keeping with an announcement. USDY is an upgradeable Ethereum ERC-20 token — obtainable at Mantle decentralized exchanges, corresponding to Agni Finance and FusionX Finance.
Ondo Finance is the chief in tokenized securities with roughly 50% market share, in keeping with a Steakhouse Monetary Dune Analytics dashboard, and has legally structured USDY as a tokenized bearer instrument. Customers also can onboard immediately into USDY on Mantle by way of Ondo Finance’s mint and bridging mechanism.
Providing a substitute for stablecoins like Tether’s USDT and Circle’s USDC, USDY is a tokenized be aware secured by short-term U.S. treasuries and financial institution demand deposits. Holders obtain a yield generated by way of the underlying belongings within the type of accumulating token worth, in keeping with the staff.
Rebasing counterpart mUSD — a wrapped model of USDY designed to take care of a peg to $1 with curiosity distributed by way of new tokens — can also be anticipated to be issued by Ondo Finance within the coming weeks, the staff added.
“RWA is anticipated to play a key function in serving to carry sustainable yield into Mantle’s broader DeFi ecosystem, and USDY and mUSD are essential items of the puzzle,” Mantle Chief Alchemist Jordi Alexander mentioned. “We’re thrilled to work with Ondo Finance to construct a extremely liquid and simply accessible ecosystem for USDY and mUSD for use and traded similar to any stablecoin, however with the additional benefit of tapping into actual world U.S. Treasury yield proper from the crypto pockets.”
“We’re delighted to accomplice with Mantle to carry USDY to market with deep secondary market liquidity,” Ondo founder and CEO Nathan Allman added.
Seed liquidity from huge Mantle Treasury
Mantle Community unveiled its mainnet alpha at EthCC in July. Following a earlier merger with backer BitDAO in Might — amalgamating BitDAO’s governance framework and treasury with the community — Mantle is now backed by one of many largest treasuries in crypto, price round $2 billion.
Mantle’s governance proposal MIP-26 — permitted by the Mantle neighborhood in September — offered seed liquidity for a mixed allowance of as much as 60 million RWA-yield-backed USD stablecoins, 30,000 ether ($56 million) and 20 million MNT ($8.2 million), with important liquidity now set to be deployed to Mantle DEXs for USDY and mUSD.
Past accessibility, potential use circumstances for the tokens within the Mantle ecosystem embody collateral for derivatives and lending protocols, yield-bearing stablecoins in DEXs to reinforce the financial incentives of liquidity provision, funds and settlement, the staff mentioned.
“RWA on blockchain has emerged as one of many use circumstances with the best potential to carry important advantages for customers due to its capacity to provide sustainable native yield,” it added. “Mantle’s foray into RWA is executed with a spotlight to carry the perfect product expertise to its neighborhood, having carried out cautious analysis and important due diligence.”
