MANTRA, a leading blockchain project in the real-world asset (RWA) tokenization sector, has announced a significant new on-chain product. This initiative features a collaboration with major players in the RWA space to build strong liquidity support for RWA tokenization, an area that has garnered significant institutional interest in 2024.
? MANTRA Launches RWA Savings Vault Powered by Ondo’s USDY#Ondo and #MANTRA will incentivize a multi-chain USDY vault allowing contributors of USDC to gain access to low-risk, short-term US treasuries yield. Those holding until the MANTRA Chain mainnet launch will receive… pic.twitter.com/X8ALXIFoGj
— MANTRA - Tokenizing RWAs (@MANTRA_Chain) May 31, 2024
MANTRA will incorporate Ondo’s USDY as a key asset when its blockchain launches later this year. USDY provides holders with exposure to short-term US Treasury yields while maintaining the utility of stablecoins. It's important to point out that USDY is not available for sale or distribution in the US or to US persons as it has not been registered under the US Securities Act.
Partnership details
The Ondo Foundation and Ondo Finance are partnering with MANTRA in this venture. Ondo Foundation is dedicated to advancing financial inclusivity and market efficiency through on-chain institutional-grade financial products. Ondo Finance provides institutional-grade, blockchain-enabled investment products and services, managing tokenized financial products and developing DeFi protocols.
"We are excited to see the USDY vault launching on MANTRA, furthering our mission to bring institutional-grade assets to the world. This yield-bearing vault is an exciting step in our journey to bridge traditional finance and decentralized finance at scale."—Nathan Allman, CEO of Ondo Finance.
This partnership aims to create a multi-chain vault that provides users who contribute USDC, the second largest stablecoin in terms of market cap, with immediate access to high-quality yield. Users who remain in the vault until MANTRA Chain’s mainnet launch will receive ONDO tokens and mainnet OM coins in addition to the underlying yield. The vault is expected to open to the public in June on Ethereum and Base.
Launching RWA Savings Vault with USDY
The idea behind MANTRA launching the RWA savings vault is to bring DeFi composability and institutional-grade finance together on-chain. USDY is an interest-bearing tokenized note that gives holders exposure to US Treasury yields.
To earn ONDO tokens and mainnet OM coins, users need to contribute USDC to the vault and maintain their participation until the mainnet launch.
"Enabling Ondo USDY, the market-leading tokenized US treasury product, marks a significant expansion of our ecosystem. Having a fungible interest-bearing base layer of liquidity via USDY is critical to enhancing our on-chain liquidity profile. This cutting-edge product launch is part of MANTRA Chain’s broader strategy to work closely with all leading RWA projects to create the most liquid Layer 1 blockchain purpose-built for RWAs."—John Patrick Mullin, co-founder and CEO of MANTRA
How to earn rewards
Contribute USDC to the vault.
Stay in the vault until MANTRA Chain’s mainnet launch.
Receive ONDO tokens and mainnet OM coins in addition to the yield.
Conclusion
MANTRA's announcement of a new RWA Savings Vault powered by Ondo’s USDY n represents a significant step forward in the unification of decentralized and traditional finance. With Ondo's USDY, which is tied to US Treasury yields, MANTRA will offer a stable option for contributors of USDC which will enhance the liquidity and financial inclusivity on its platform. The partnership and the upcoming mainnet launch are set to offer substantial rewards to participants.