ONDO Price Soars 5% as MANTRA Debuts USDY RWA Vault

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As an experienced financial analyst, I am excited about MANTRA’s recent announcement of their new savings vault backed by Ondo and using the USDY token. This move is significant as it showcases the integration of traditional finance into decentralized finance (DeFi) through the use of short-term US Treasury yields.

Ondo’s market price surged by 5% following the announcement from MANTRA that they would be introducing a new savings product linked to Ondo and utilizing the USDY token.

The freshly introduced offering from MANTRA is projected to amplify the value of real-world asset (RWA) tokens within the thriving yet nascent sector of decentralized finance (DeFi). Institutional investors have recently taken notice of this burgeoning market.

MANTRA’s introduction of the USDY, which is backed by US Treasury yields and uses Ondo’s tokenized notes, marks a significant step forward in merging conventional finance with Decentralized Finance (DeFi).

Details on the USDY Vault and MANTRA Chain Integration

I’m an expert in crypto investing. By the end of this year, MANTRA Chain is anticipated to launch its mainnet with USDY serving as the native asset. In preparation for this event, both MANTRA and the Ondo Foundation are developing a multichain vault that is compatible with Ethereum and Base networks.

As an analyst, I would explain it this way: In this vault, I can store my USDC tokens. In return, I’ll earn a yield derived mainly from US Treasury bonds.

We are delighted to announce that @MANTRA_Chain will feature Ondo’s flagship yieldcoin, $USDY, as a genesis asset when its blockchain debuts. $USDY provides exposure to short-term US Treasuries alongside the utility of stablecoins.

Welcome to the Ondo Ecosystem, Mantra!

…

— Ondo Finance (@OndoFinance) May 31, 2024

To entice more people, MANTRA and Ondo have suggested a revised plan with increased rewards based on the level of involvement from the community.

As a crypto investor, I understand the importance of preventing return dilution, especially as more investors join the ecosystem. To achieve this, we’re carefully releasing this new vault to ensure there’s enough liquidity for all participants. This strategic move enables us to advance the operational development of the MANTRA chain smoothly and effectively.

Institutional Features and ONDO Price Response

Institutional investors at MANTRA will benefit from this USDY integration, as it includes features such as overcollaterization, external oversight, and robust customer safeguards.

The mentioned components reinforce trust and steadiness in the RWA market, making it a crucial element of USDY as a groundbreaking financial invention.

After the announcement, the market has shown a favorable reaction towards ONDO, as indicated by the rise in its price. Currently, despite a downturn at the beginning of the trading day, ONDO’s bullish trend has regained momentum with the stock priced at 5.84% higher, or $1.25.

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2024-06-01 01:34