Introducing USDY: A Yield-Generating Token Backed by Real-World Assets
Mantle, a decentralized autonomous organization-led web3 ecosystem, has partnered with Ondo Finance to launch USDY. This token is backed by real-world assets and aims to provide a yield for its holders. USDY is an upgradeable Ethereum ERC-20 token that can be accessed through Mantle decentralized exchanges like Agni Finance and FusionX Finance.
Ondo Finance: Leader in Tokenized Securities
Ondo Finance, the leader in tokenized securities with a 50% market share, has structured USDY as a tokenized bearer instrument. Users can onboard directly into USDY on Mantle using Ondo Finance’s mint and bridging mechanism.
An Alternative to Stablecoins
USDY offers an alternative to stablecoins like USDT and USDC. It is a tokenized note secured by short-term U.S. treasuries and bank demand deposits. Holders receive a yield in the form of accumulating token value from the underlying assets.
Rebasing Counterpart mUSD
In the coming weeks, Ondo Finance plans to issue mUSD, a wrapped version of USDY designed to maintain a peg to $1 with interest distributed via new tokens.
Mantle’s Mainnet Alpha and Treasury
Mantle Network recently unveiled its mainnet alpha and is now backed by one of the largest treasuries in crypto, worth around $2 billion. The governance proposal MIP-26 provided seed liquidity for USDY and mUSD, with significant liquidity set to be deployed to Mantle DEXs.
Potential Use Cases in the Mantle Ecosystem
USDY and mUSD can be used as collateral for derivatives and lending protocols, yield-bearing stablecoins in DEXs, and for payments and settlement within the Mantle ecosystem.
Hot Take: Bringing Sustainable Yield to the DeFi Ecosystem
Mantle’s partnership with Ondo Finance to launch USDY and mUSD aims to bring sustainable yield into the broader DeFi ecosystem. By tapping into real-world U.S. Treasury yield, these tokens offer a highly liquid and easily accessible alternative to stablecoins.
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