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USDY Goes Live on Arbitrum: Bringing RWAs to DeFi

USDY Goes Live on Arbitrum: Bringing RWAs to DeFi

We’re excited to announce that USDY, Ondo’s market-leading permissionless yieldcoin, is now available natively on Arbitrum for users and developers. This integration brings our tokenized US Treasuries product to one of the largest DeFi ecosystems, continuing Ondo’s momentum of expanding the utility and access of real-world assets onchain. USDY is now live in Arbitrum’s leading DdFi protocols, including Camelot and Dolomite.

With over $350M in TVL across 8 blockchains, USDY currently offers a 5.35% APY and enables global (non-US) individual and institutional investors on Arbitrum to access the utility of stablecoins combined with yield generation secured by US Treasuries.

Unlocking the Potential of Arbitrum

Arbitrum now exceeds $15.5B in Total Value Locked (TVL) and $4.5B in stablecoins, making it one of the largest blockchain networks with a growing user and developer ecosystem. Arbitrum has emerged as a prominent Layer 2 scaling solution for Ethereum, utilizing its Optimistic Rollup technology to efficiently scale transaction throughput for decentralized applications while maintaining the security of the Ethereum blockchain.

The launch of USDY comes shortly after the Arbitrum DAO’s STEP Committee decided to diversify 6M ARB from the Arbitrum DAO Treasury into Ondo USDY, supporting the adoption of Real-World Assets (RWAs) on Arbitrum. Ondo USDY represents 17% of the $35M ARB total investment, second only to BlackRock’s BUIDL fund. Now, USDY is live across Arbitrum’s leading DeFi protocols, bringing the power of native yield to an already robust ecosystem.

“We are thrilled to see USDY launch on Arbitrum, paving the way for some of the largest decentralized finance applications to leverage our tokenized US Treasuries,” said Katie Wheeler, VP of Partnerships at Ondo Finance. “Arbitrum’s DeFi ecosystem has demonstrated substantial growth, making it a natural fit given USDY’s composability and growing momentum across DeFi."

“We’re excited to see Ondo join the Arbitrum ecosystem,” said Luke Xiao, Senior Partnerships Manager at Offchain Labs. “This integration adds a new asset to serve DeFi users, further expanding the opportunities available on Arbitrum. The inclusion of Ondo products in the Arbitrum DAO STEP program further highlights the growing demand for real-world assets onchain, and we believe this launch will play a key role in continuing to mature the DeFi space on Arbitrum.”

Obtaining USDY on Arbitrum

Non-US investors can onboard directly with Ondo here, or acquire USDY within the Arbitrum ecosystem.

For those looking to swap into and out of USDY on Arbitrum, it will be available on Camelot.

You can verify the current price of USDY, as well as find further information, on Ondo's website.

Utilizing USDY on Arbitrum

Token holders can now use USDY tokens across the Arbitrum ecosystem, on decentralized applications such as:

Camelot 

  • Camelot is a customizable decentralized exchange protocol, allowing both builders and users to leverage flexible infrastructure for deep, sustainable liquidity. Camelot is focused on offering a tailored approach that prioritizes composability within the Arbitrum ecosystem. 
  • Camelot will serve as the primary DEX for swapping into and out of USDY, meaning users can swap any Arbitrum-native token into USDY.

Dolomite 

  • Dolomite is an innovative money market and margin trading protocol enabling access to dormant capital. 
  • Users will be able to deploy USDY into the borrowing and lending platform

And many more coming soon…

Holding USDY on Arbitrum

Both Blocto and Capsule wallets are popular choices for holding tokens, including USDY, on Arbitrum. These wallets facilitate seamless interactions with DeFi applications, maximizing the potential of USDY within the Arbitrum ecosystem.

  • Blocto: An ERC-4337 compatible smart contract wallet with flexible account abstraction, enabling users to store and interact with USDY.
  • Capsule: A cross-app embedded wallet live on EVM, Solana, and Cosmos.

Oracle Price Feeds

Pyth will have price feeds for USDY on Arbitrum, unlocking use cases where USDY can be used as collateral:

  • Primary market price feeds reflecting the price at which users can buy and redeem USDY from Ondo.
  • Secondary market price feeds reflecting the price at which USDY is traded across all sources of liquidity both inside and outside of the Arbitrum ecosystem.

Recap on USDY

USDY is the world’s first tokenized note secured by a portfolio of US Treasuries. It is accessible to non-US individual and institutional investors and is designed to combine the accessibility of stablecoins with US dollar-denominated yield. Key features include:

  • Broad Accessibility: Tokenized loan that can trade globally in secondary markets to non-US investors.
  • Yield-Bearing: Accrues a variable interest rate, adjusted monthly by the issuer. Yield accrues in the form of a redemption value.
  • High-Quality Collateral: Secured by a portfolio of short-term US Treasuries.
  • Regulatory Compliance: Issued under a continuous Reg S offering to offshore investors with best practices KYC/AML/CFT procedures.

⚠️ 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. Past performance is not an indication of future results.

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 ondo.finance/usdy for details.