Mantle, one of the world’s largest DAO-led web3 ecosystems built around Ethereum layer 2 (L2) Mantle Network, announced today ahead of TOKEN2049 its entry into real world assets (RWAs) with Ondo Finance’s USD Yield ($USDY) token. $USDY has become the first project of Mantle Showcase, a program that highlights projects for their product-market fit and ability to bring the greatest benefits to the Mantle community.
RWAs on blockchain have emerged as one of the use cases with the greatest potential to bring significant benefits for users. Mantle now expands into the RWA vertical with a focus to bring the best product experience to its community, having conducted careful research and significant due diligence. RWAs are expected to play a key role in helping bring sustainable yield into Mantle’s broader DeFi ecosystem. Having Ondo’s tokenized U.S. Treasuries (and other tokenized cash equivalents) is a crucial piece of the puzzle.
Ondo’s $USDY has been chosen as the inaugural Mantle Showcase project on the grounds of its potential to bring the greatest benefits to the Mantle community and provide the smoothest user experience, particularly in the following aspects:
Users will be able to acquire $USDY both by onboarding with Ondo to mint new $USDY and by purchasing $USDY on decentralized exchanges (DEXs) on Mantle Network. A recently passed Mantle Governance proposal MIP-26 approved seed liquidity for RWA-yield-backed stablecoins — up to a combined allowance of 60M USDx. Consequently Mantle is expected to become the first blockchain ecosystem where $USDY will have material DEX liquidity, making it possible for any on-chain investor to easily buy and sell $USDY without having to onboard with Ondo.
$USDY can be adopted as a de facto yield-bearing stablecoin throughout Mantle Ecosystem with the following as some potential use cases:
“$USDY truly is a game changer for the world of DeFi — For the first time ever, users will be able to access U.S. Treasury yield straight from the tap and directly into their wallet, with a similar ease of access to stablecoins like USDT and USDC,” said Jordi Alexander, chief alchemist of Mantle.
“We’re incredibly excited to collaborate with Mantle in introducing $USDY to the market. We admire Mantle’s approach to putting substantial support behind a highly curated set of top-tier protocols and products to deliver the best possible cohesive on-chain ecosystem,” said Nathan Allman, Founder & CEO of Ondo. “We eagerly anticipate introducing other high-quality institutional-grade assets to the Mantle ecosystem in the future.”
Mantle Ecosystem comprises an Ethereum layer 2 (L2) — Mantle Network, a decentralized autonomous organization (DAO) — Mantle Governance, one of the largest on-chain treasuries — Mantle Treasury, and an upcoming Ether (ETH) liquid staking product — Mantle LSD: all built on Ethereum. Mantle token is the unified product and governance token of the ecosystem.
Its first core product is Mantle Network, an Ethereum L2. Mantle Network strives to be compatible with the Ethereum Virtual Machine. The network’s modular architecture separates transaction execution, data availability, and transaction finality into modules — which can be individually upgraded and adopt the latest innovations. Mantle Network is the first L2 to partner with ETH restaking protocol EigenLayer for the data availability module. By adopting a rollup architecture, the network is secured by Ethereum. As the world’s first DAO-spawned L2, Mantle Network is pioneering a vision for the mass adoption of token-governed technologies.
Its token ($MNT) powers the network as its native gas token and ecosystem growth token, and serves as the governance token of Mantle Governance. All future Mantle products will likewise be initiated by the Mantle token holder community through vote and powered by Mantle token.
Ondo Finance provides institutional-grade, blockchain-enabled investment products and services. Ondo has an asset management arm that creates and manages tokenized financial products as well as a technology arm that develops decentralized finance protocols and blockchain solutions.
Ondo’s first core products are tokenized cash equivalents that deliver very low risk, high quality yield from U.S. Treasuries, money market funds, and similar instruments, offering on-chain investors an alternative to stablecoins where holders rather than issuers earn the vast majority of the underlying asset yield. Ondo also developed Flux Finance, a DeFi lending protocol supporting tokenized treasuries as collateral, recreating treasury repo markets on-chain while creating on-chain utility for Ondo’s tokenized securities.
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