Mantle Showcase: Ondo’s $USDY Announced as Showcase Partner for RWA
09/12/234 min read
At Mantle we are fully focused on bringing the best product experience to our community, bar none. We strongly believe that Real World Assets (RWAs) on the blockchain are one of the use cases with the greatest potential to bring significant benefits for users, and as such we have been conducting a lot of research into the possibilities of this expanding vertical!
Bringing sustainable yield into our broader DeFi ecosystem is a key part of this process, and having Tokenized U.S. Treasuries (and other tokenized cash equivalents) is a crucial part of the puzzle we are building.
For this reason, we are thrilled to announce that Ondo Finance’s USD Yield (USDY) token is coming to Mantle Ecosystem!
“USDY truly is a game changer for the world of DeFi. For the first time ever, users will be able to access U.S. Treasury yield straight from the tap and directly into their wallet, with a similar ease of access as stablecoins like USDT and USDC,” said Mantle Chief Alchemist Jordi Alexander.
After significant diligence, we are confident that USDY is a fantastic choice for the Mantle Showcase, as we carefully craft products that will not only bring the greatest benefits to our community, but also provide the smoothest user experience and investor protections:
High-quality assets with sustainable yield. USDY is the world’s first tokenized note secured by a combination of U.S. Treasuries and bank deposits. Tokenholders receive a yield supported by these high-quality assets — currently at 5% APY.
Focus on legal & regulatory compliance. To protect the capital of our users (as well as our own), we wanted to ensure that we partnered with a group that takes a meticulous approach to compliance. With an emphasis on investor protection and having performed due diligence on the bankruptcy remoteness process implemented, we believe the USDY’s investor protections are the best that exist in tokenized RWAs.
Ease of access. USDY is legally structured as a tokenized bearer instrument (similar to stablecoins). This means investors do not need to onboard with Ondo in order to acquire or trade USDY in the secondary market. (And even for those who wish to mint or redeem USDY natively, Ondo’s onboarding process is automated and easy, and is available to nearly all non-U.S. individuals and institutions.)
Market leadership. Ondo is already a leader in the RWA space, with approximately 50% market share in tokenized securities. Ondo also popularized tokenized treasuries with its release of OUSG in February 2023 (currently at $160m+ in assets). We consider USDY as a first step in a broader partnership with Ondo to bring many diverse, quality RWAs to Mantle.
"We're incredibly excited to collaborate with Mantle in introducing USDY to the market. We admire Mantle’s approach to putting substantial support behind a highly curated set of top-tier protocols and products to deliver the best possible cohesive on-chain ecosystem," said Nathan Allman, Founder & CEO of Ondo. "We eagerly anticipate introducing other high-quality institutional-grade assets to the Mantle ecosystem in the future."
Users will be able to acquire USDY both by onboarding with Ondo to mint new $USDY and by purchasing $USDY on DEXs on Mantle:
If you have stablecoins on Mantle: Mantle is expected to become the first blockchain ecosystem where USDY will have material decentralized exchange (DEX) liquidity, making it possible for any on-chain investor to easily buy and sell USDY without having to onboard with Ondo.
If you have stablecoins on Ethereum: Ondo is launching a native asset bridge that will allow for low-cost bridging of USDY between supported chains, which will initially be Ethereum and Mantle Network. Any non-U.S. investor can on-board directly with Ondo to buy USDY on Ethereum and then bridge it to Mantle Network by Mid-October. Native mint/redeem of USDY on Mantle will come shortly after as well.
Building With USDY
$USDY can be adopted as a de facto yield-bearing stablecoin throughout Mantle Ecosystem with the following as some potential use cases:
Collateral: USDY can be employed as collateral for perpetuals/derivatives and lending protocols.
AMMs: Utilizing USDY as the "cash leg" in an AMM enhances the economic attractiveness of being an LP.
Payments/Settlement: USDY will have a rebasing format where its value will stay pegged at 1.00 USD, and interest will be paid via new token units, eliminating the accounting complexity of using USDY for payments or settlement.
Rebasing + Accumulating Forms
USDY will be issued natively in an accumulating form, such that its redemption value increases slightly each day based on the prevailing interest rate set by Ondo. There will also be a rebasing wrapper of USDY issued by Ondo (by mid-October), which will be legally fungible with USDY in its accumulating form but will target a 1 USD redemption value.
Mantle + USDY
We are very excited to be working with the Ondo team to bring USDY to Mantle, and expect that it will be the first of many quality RWAs we bring to our network with Ondo. For more info on Ondo and USDY, check out https://ondo.finance.