DeFi
Ondo Finance & Drift Protocol partner to integrate USDY
Ondo Finance, a leading provider of tokenized real-world assets, has partnered with Drift Protocol, a decentralized trading platform based on Solana, to enable the integration of real-world assets (RWA) into the Solana DeFi ecosystem.
“The integration of USDY with Drift significantly improves capital efficiency for perpetual traders on Solana and signifies the start of a new era in DeFi,” said Justin Schmidt, President and COO of Ondo Finance.
USDY, collateralized by short-term US Treasury bonds and offering an annual percentage yield of 5.30%, is positioned as a bridge between traditional finance and decentralized finance (DeFi). THE the integration The use of USDY as collateral for trading perpetual contracts on Drift’s platform represents the first time a yield-generating stablecoin has been used in this way.
The integration of USDY as collateral is expected to increase trading volumes and liquidity on the Drift platform. Users will no longer have to choose between generating a return on their stablecoins or using them as collateral for trading. Instead, they can earn yield and trade simultaneously, generating returns on their collateral while executing trades.
Cindy Leow, co-founder of Drift, added: “We are excited about this partnership because Drift’s goal is to create a fully on-chain platform to trade any asset with any collateral. Ondo’s solution unlocks a utility for real-world tokenized assets to unlock greater capital efficiency for traders.
The collaboration between Ondo Finance and Drift Protocol can mark the development of these relationships and the popularity of RWA in DeFi to create the possibility of admitting more tokens linked to RWA, which will complement the variety and quality of collateral promised among traders .
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