Exploring USDY on Aptos: Bringing RWAs to a High-Performance Blockchain

⚠️  NOTE: USDY is not, and may not be, offered, sold, or otherwise made available in the US or to US persons. USDY has not been registered under the US Securities Act ("Act") or pursuant to securities laws of any other jurisdiction, and may not be offered, sold or otherwise transferred in the US or to US persons unless registered under the Act or an exemption or exclusion from the registration requirements thereof is available. Additional restrictions may apply. Nothing herein constitutes any offer to sell, or any solicitation of an offer to buy, USDY. Acquiring USDY involves risks. A USDY holder may incur losses, including total loss of their funding to acquire USDY tokens. Ondo does not endorse, Ondo does not make any representation or warranty whatsoever (express or implied, including but not limited to any warranty of merchantability, fitness for a particular purpose or non-infringement) regarding, and ONDO SHALL NOT HAVE ANY LIABILITY WHATSOEVER WITH RESPECT TO ANYONE'S USE OF, any third-party products, services or technologies referenced herein. Additional terms apply. Visit http://ondo.finance/usdy for details.

With over $170B in total TVL across the blockchain economy, stablecoins have emerged as one of crypto’s most successful innovations. A powerful tool for decentralized banking, they enable frictionless trading, lending, and borrowing on DeFi platforms. And yet, there is opportunity for further innovation. We believe the natural evolution of dollar-denominated stablecoins are tokenized, real-world assets—like tokenized US Treasuries—offering the same core functionality as stablecoins coupled with yield and improved investor protections.

USDY—a quasi-permissionless US Treasuries-backed yieldcoin—is our contribution to this evolution, and we are deploying it across some of the most performant ecosystems. As more capital flows onchain into these promising ecosystems, demand for stable assets rises, solidifying their role as a core building block in crypto. And as the space matures, demand for innovation rises as well. Ondo's recent deployment of USDY on the Aptos network is answering these calls.

Built on the Move smart contract programming language, Aptos supports the parallel execution of multiple transactions simultaneously rather than sequentially. In a market saturated with infrastructure, Aptos’ distinct technical architecture sets it apart from the field, representing an ideal environment for novel offerings like yieldcoins to take the leap from 0->1 alongside the rising ecosystem.

To better understand the opportunity of pairing tokenized RWAs as yieldcoins with nascent blockchain economies, let’s explore how USDY's deployment on Aptos brings a transformative advantage for perpetual trading, lending, liquidity provision, and collateralized assets throughout the broader DeFi landscape.

Taking Advantage of RWAs on Aptos

Aptos has emerged as a prime destination for institutional-grade RWA solutions, built with institutional-grade features which provide the ideal foundation for handling complex financial instruments like tokenized US Treasuries. Its technical architecture, powered by the Move programming language, allows for parallel execution of transactions, reducing bottlenecks and enabling low transaction fees. Aptos is thoughtfully built with distinct infrastructure advantages that continue to attract developers and projects. Naturally, demand for secure, performant assets is expanding rapidly in conjunction. And the utility of USDY on Aptos is showcasing the network’s ability to bridge traditional finance and blockchain efficiency—unlocking new opportunities for onchain and real-world asset integration.

Here are some of the ways users can tap into Ondo’s market-leading yieldcoin across this nascent ecosystem (note that examples have been provided for informational purposes only, and Ondo does not approve or endorse any of these third-party protocols):

Seamlessly Swap USDY

To get started with USDY on Aptos, users will need to swap into the yieldcoin from any existing asset. For example, USDY is available on the LiquidSwap platform, an Aptos-native DEX and liquidity platform that includes a direct bridge from EVM chains.

Lend and Borrow USDY 

Composable RWAs offer a unique edge in the Aptos DeFi ecosystem, allowing users to earn interest from borrowers while also providing an additional layer of yield from the underlying US Treasury returns. Aries Markets is one money market platform on Aptos offering the option for USDY users to borrow and lend across various markets.

Create Liquidity Pools for USDY

Providing liquidity is an essential function for a healthy market, and users on Aptos can easily deploy their USDY holdings to bolster liquidity, earning additional yield atop the native RWA yield generation. For example, Cellana, the largest DEX by TVL on the Aptos network, allows users to establish USDY liquidity pools, with liquidity incentives developed through the Ve(3,3) Model in Move. Users can swap into and out of USDY on Cellana and create their own liquidity pools to explore the Ve(3,3) Model.

Despite its technical strengths and ability to nurture innovative levers via its Move Architecture, Aptos mainnet is still just two years old—presenting an untapped opportunity to demonstrate clear value and stickiness to users. The integration of USDY lends itself to this stickiness, providing users with the ability to engage with unique DeFi strategies on a performant blockchain while deploying capital more efficiently through yield-generating collateral.

Expanding USDY Across the Aptos Ecosystem

While money markets and liquidity pools create valuable opportunities for USDY users, this is just the start of USDY’s expansion across the Aptos ecosystem. USDY offers economic efficiencies as yield-bearing collateral for yet untapped use cases including:

Perpetual Markets: Perpetual markets on Aptos can utilize USDY as collateral for trade execution, allowing users to offset funding rates via native yield.

Derivatives and Options: Beyond perpetual markets, USDY can also serve as collateral for other forms of derivative contracts, including options trading, where capital efficiency is paramount to bottom lines.

Aptos and USDY: Capital Efficiency Meets Execution Efficiency

Aptos' fast, low-cost infrastructure combined with USDY’s yield-bearing properties create a unique opportunity for users to engage in DeFi with maximum efficiency, both in execution and in capital. As the Aptos ecosystem continues to grow, USDY will play a pivotal role in attracting liquidity and users, offering a better alternative to traditional stablecoins. Pairing the native yield of tokenized RWAs with Aptos’ uniquely fast infrastructure can create a premier venue for a wide range of DeFi applications, from trading to lending and beyond. 

Ondo’s integration with Aptos is a significant move towards advancing real-world asset tokenization on the blockchain. Together with Aptos, Ondo is setting the stage for a global market of tokenized assets and yield-generating products on blockchain rails.