Mantle Network expands to RWA via Ondo Finance’s USDY

Mantle, an Ethereum layer 2 solution, has expanded its product offering via Ondo Finance’s USD Yield (USDY).
Users can access US Treasury yield directly from their Mantle wallet.

Mantle, an Ethereum layer-2 protocol backed by crypto exchange Bybit, has announced its expansion to the real world assets (RWA) market.

Specifically, Mantle is tapping into the tokenized US Treasuries offerings via Ondo Finance to bring sustainable yield to the broader DeFi ecosystem. The Mantle team is looking to achieve this through Ondo Finance’s USD Yield (USDY) token.

💵 We strongly believe that Real World Assets (RWAs) on the blockchain are one of the use cases with the greatest potential to benefit users. As such, we have been conducting a lot of research into the possibilities of this expanding vertical!

— Mantle (@0xMantle) September 12, 2023

Access US Treasury yield via Mantle wallet

USDY is the first tokenized note in the world to be secured by both short-term US Treasuries and bank deposits.

Ondo, which raised $20 million in its Founders Fund and Pantera Capital co-led series A round in 2022, debuted USDY in April this year, bringing to the RWA market a token with the accessibility and utility that users have with stablecoins. It provides a 5% APY to holders.

“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 as stablecoins like USDT and USDC,” Jordi Alexander, Chief Alchemist at Mantle, said.

Today’s announcement comes after a Mantle improvement proposal (MIP-26) for a RWA liquidity pool (RWA-yield backed stablecoins) of up to $60 million was approved. The MIP-26 proposal, authored by Mantle’s Economics Committee, passed with 149 million MNT/BIT against 3.2K MNT/BIT.

As part of the launch, USDY has become the inaugural Mantle Showcase yield stablecoin project.

According to the protocol, the DEX liquidity that Ondo’s USDY brings to the Mantle ecosystem will make it easy for users to buy and sell USDY on-chain. Investors can acquire the token by minting on Ondo or purchasing them on decentralised exchanges (DEXs) on Mantle