DeFi
Innovative partnership between Ondo Finance and Pyth Network
Ondo Finance and Pyth Network are pioneers in the decentralized finance (DeFi) space by integrating institutional assets into over 65 blockchain ecosystems. Their partnership aims to improve on-chain accessibility to traditional assets, which will significantly benefit smart contract developers and DeFi users.
DeFi promises to revolutionize financial markets and the financial industry by providing decentralized access to traditional assets. To realize this vision, blockchain users need seamless access to these assets across various blockchains and decentralized applications.
Ondo Finance, known for its tokenized real-world assets, has partnered with Pyth Network to bring this vision to life. Their collaboration has resulted in the launch of the USDY/USD Price Feed by Pyth, now available in over 65 blockchain ecosystems. This development allows smart contract developers around the world to leverage real-time feeds for Ondo’s yieldcoin, USDY.
This collaboration opens new opportunities for developers and projects to integrate institutional assets on-chain, enhancing the potential of DeFi. Pyth Network’s 100+ proprietary data providers are ready to support more real-world assets as requested by Web3 developers.
The USDY token: a stable and yield-generating asset
Ondo’s USDY (US Dollar Yield) is a tokenized note backed by short-term US Treasuries, offering a stable and yield-generating alternative to traditional stablecoins. By combining the benefits of on-chain finance with the stability of traditional assets, USDY offers sustainable yields to institutional and individual participants in on-chain capital markets. Backed by safe and liquid assets, USDY exemplifies the fusion of traditional and decentralized finance.
The launch of Pyth’s USDY/USD Price Feed extends USDY’s reach to ecosystems such as Ethereum Virtual Machine (EVM), Solana, Move, Bitcoin, and Cosmos. This partnership is designed to create a unified and interoperable DeFi experience, overcoming the fragmented nature of blockchain ecosystems.
Improving DeFi with Multi-Chain Synergies
The widespread activation of USDY/USD Flow across 65+ blockchains enables various on-chain applications to establish markets for USDY. This broad availability of key assets fosters a more composable and dynamic DeFi landscape. The presence of USDY/USD Flow across multiple blockchains allows DeFi applications to expand their reach and serve new user bases, breaking down silos in the blockchain world and enabling the free flow of assets across different chains.
Integrating traditional finance into DeFi through this development is crucial to bring increased liquidity, security, and stability. By incorporating traditional assets onto smart contract platforms, Ondo Finance is paving the way for more sophisticated DeFi products and services.
Real-time data for better market opportunities
Pyth Price Feeds provide sub-second updates, allowing blockchain users to track traditional financial markets in near real-time. This feature levels the playing field between DeFi and CeFi (centralized finance) solutions, opening up new market opportunities. Oracle feeds for key assets are essential for blockchain foundations to grow their ecosystems, attract developers, and better serve users.
Ecosystem collaborations
Several blockchain foundations and DeFi protocols are among the first to use the new Pyth USDY/USD feed. Aptos, Solana, and Mantle are key collaborators on this initiative.
Apartments: Collaboration with Ondo Finance to tokenize real-world assets, with Pyth Price Feeds accelerating this initiative.
Solana: Ondo Finance has extended its US Treasury-backed assets to the Solana ecosystem, powered by Oracle Pyth feeds to enhance Solana’s Layer 1 offerings.
Coat: Working with Ondo Finance to advance the Real World Asset (RWA) movement, bringing sustainable returns to the DeFi ecosystem.
Integration with DeFi protocols
Several Pyth ecosystem partners are already integrating this price feed, expanding its reach and utility. These include:
Derivative: A dynamic AMM-based perpetual futures DEX on Solana.
FlashTrade:Asset-backed trading with on-demand liquidity on Solana.
Thala:A DeFi hyperapplication and liquidity engine on Aptos.
DePerp:A perpetual trading mini-app on Telegram and a web app on Base.
Looking forward
Pyth Network and Ondo Finance continue to help smart contract developers build more accessible and sophisticated decentralized finance solutions. By driving innovation in DeFi and integrating institutional assets, they are poised to make a significant impact on the future of finance, fostering a more inclusive and vibrant financial ecosystem.
This strategic partnership between Ondo Finance and Pyth Network marks an important step towards the seamless integration of traditional and decentralized finance, fostering a robust and interconnected DeFi landscape.