Mantle, one of the world’s largest DAO-led web3 ecosystems built around Ethereum layer 2 (L2) Mantle Network, and Ondo Finance, a market leader in institutional-grade, blockchain-enabled investment products and services, announced the arrival of USD Yield ($USDY) token in Mantle Ecosystem following the launch of Ethereum L1 to Mantle Network L2 bridge for $USDY. A rebasing version, $mUSD, is expected to follow shortly. Ondo’s $USDY is the inaugural Mantle Showcase app, by virtue of its product-market fit and ability to bring the greatest benefits to the Mantle community.
RWA to Provide Sustainable Native Yield for $USDY and $mUSD
Backed by real world assets (RWA), $USDY is a tokenized note secured by short-term U.S. Treasuries and bank demand deposits. $USDY holders receive yield generated from the underlying assets in the form of increasing redemption value (accumulating token). The $USDY contract is an upgradeable (Transparent Upgradeable Proxy) ERC-20 token. $USDY can now be acquired at Mantle DEXs such as Agni Finance and FusionX Finance. Alternatively, users may also onboard with Ondo Finance to mint and bridge $USDY onto Mantle Network.
$mUSD, a rebasing wrapped version of $USDY exclusively on Mantle Network that is designed to maintain a consistent peg to $1, with interest distributed via new token units, will also be issued by Ondo Finance in the ensuing weeks. Users will be able to bridge, swap and wrap $mUSD to Mantle on ondo.finance’s upcoming swapper UI.
Mantle Ecosystem Support and Uses Cases for $USDY and $mUSD
Ondo Finance’s $USDY and $mUSD hold vast potential to bring the greatest benefits to the Mantle community and provide the smoothest user experience, particularly in supplying sustainable yield with high-quality assets, having a safe and reliable issuer thanks to Ondo’s focus on legal and regulatory compliance and investor protection, not to mention Ondo’s RWA vertical market leader status with approximately 50% market share in tokenized securities, and allowing the ease of access — with $USDY and $mUSD legally structured as tokenized bearer instruments (similar to stablecoins), making them freely tradable by holders on Mantle Network.
Mantle Governance proposal MIP-26 approved seed liquidity for RWA-yield-backed stablecoins — up to a combined allowance of 60M USDx stablecoins. Significant liquidity will soon be deployed to leading Mantle DEXs, creating convenient and material liquidity for $USDY, and soon $mUSD as well.
$USDY and $mUSD may be employed throughout Mantle Ecosystem as collateral for perpetuals/derivatives and lending protocols, utilized as a yield-bearing stablecoin in an AMM to enhance the economic attractiveness of being a liquidity provider (LP), and used for payments and settlement.
RWA on blockchain has emerged as one of the use cases with the greatest potential to bring significant benefits for users thanks to its ability to supply sustainable native yield. Mantle’s foray into RWA is executed with a focus to bring the best product experience to its community, having conducted careful research and significant due diligence.
“RWA is expected to play a key role in helping bring sustainable yield into Mantle’s broader DeFi ecosystem, and $USDY and $mUSD are crucial pieces of the puzzle,” said Jordi Alexander, chief alchemist of Mantle. “We are thrilled to work with Ondo Finance to build a highly liquid and easily accessible ecosystem for $USDY and $mUSD to be used and traded just like any stablecoin, but with added benefit of tapping into real world U.S. Treasury yield right from the crypto wallet.”
“We are delighted to partner with Mantle to bring $USDY to market with deep secondary market liquidity,” said Nathan Allman, Founder & CEO of Ondo. “There’s an exciting lineup of protocols integrating $USDY that we will be announcing over the coming months. The Mantle Ecosystem is quickly becoming a market leader in showcasing useful applications of RWAs.”
Mantle Ecosystem comprises an Ethereum layer 2 (L2) — Mantle Network, a decentralized autonomous organization (DAO) — Mantle Governance, one of the largest on-chain treasuries — Mantle Treasury, and an upcoming Ether (ETH) liquid staking protocol — Mantle LSP: all built on Ethereum. Mantle token is the unified product and governance token of the ecosystem.
Mantle’s first core product is Mantle Network, an Ethereum L2. Mantle Network strives to be compatible with the Ethereum Virtual Machine (EVM). Mantle Network’s modular architecture separates transaction execution, data availability, and transaction finality into modules — which can be individually upgraded and adopt the latest innovations. Mantle Network is the first L2 to partner with ETH restaking protocol EigenLayer for the data availability module. By adopting a rollup architecture, Mantle Network is secured by Ethereum. As the world’s first DAO-spawned L2, Mantle Network is pioneering a vision for the mass adoption of token-governed technologies.
Mantle token ($MNT) powers Mantle 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.
To support the next-generation of innovators, builders, and developers, Mantle is growing its ecosystem via Mantle Grants Program and Mantle EcoFund, a catalyzed capital pool of $200M. Mantle’s Showcase Apps program lends additional support and publicity to ecosystem projects in categories such as real world assets (RWA).
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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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