Ondo US Dollar Yield

Ondo US Dollar Yield (USDY) is a tokenized note secured by short-term US Treasuries and bank demand deposits. It was launched in August 2023 with the aim of providing a yield-generating product that combines the accessibility of stablecoins with the regulatory clarity of traditional finance.

USDY is designed to offer a 5% APY, which is subject to change, and is backed by a blended portfolio of US Treasuries and bank demand deposits. The token is available for minting and redemption by both individual and institutional investors, with a minimum onboarding time of less than 5 minutes for individuals and 15 minutes for institutions.

In terms of price history, USDY has experienced fluctuations over time. For instance, in the last 7 days, the price of USDY in USD ranged from a high of $1.041 to a low of $1.038. The largest 24-hour price movement occurred on Friday, May 31, 2024, with a change of $0.00311613 (0.3%).

USDY has also seen significant price movements over longer periods. In the last month, the price has decreased by 0.80%, and in the last year, it has fluctuated between a high of $1.26 and a low of $0.9332.

Ondo US Dollar Yield (USDY) is a stablecoin alternative that combines the stability of traditional stablecoins with the benefits of yield generation. Here's how it works:

To create new USDY tokens, users can subscribe through three methods:

1. Wire Transfer: Users can deposit funds in USD via wire transfer.
2. USDC Deposit: Users can deposit USDC via the Ondo web interface, which directs them to send USDC to a controlled address.
3. USDT Deposit: Users can deposit USDT directly to a controlled address.

The subscription process involves assigning the deposit to a specific cohort, which runs from Wednesday to Tuesday. This cohort determines when the user can claim their USDY tokens and start earning interest.

Investors can redeem their USDY tokens by returning them to Ondo, receiving their principal amount plus accrued yield. This process allows for daily liquidity.

USDY tokens are transferable and can be sold in the secondary market or used within DeFi applications. This flexibility enhances the token's utility and liquidity.

USDY tokens are backed by a bankruptcy-remote portfolio of US Treasuries and bank deposits, ensuring high-quality collateral. They offer a yield-bearing nature, daily liquidity, and global accessibility, making them an attractive option for non-US individual and institutional investors seeking dollar-denominated assets with yield.

USDY tokens can be employed across the Solana ecosystem, benefiting from a native 5.2% APY yield. The Ondo Bridge, a cutting-edge solution, facilitates seamless transfers of USDY tokens between Ethereum and Mantle networks, further enhancing their accessibility and liquidity.

Ondo US Dollar Yield (USDY) offers several strengths, including:

• Institutional-Grade Protections: USDY is designed with strong structural and bankruptcy-remote protections to safeguard investors' funds. It is secured by high-quality bank demand deposits and short-term US Treasuries, ensuring that investors' assets are well-protected even in the event of a hypothetical bankruptcy.

• Transparency and Oversight: Ankura Trust serves as the Verification Agent and Collateral Agent, providing daily transparency reports and ensuring that the assets securing USDY are properly managed. This level of oversight enhances investor confidence and protection.

• Attractive Yield: USDY offers a variable interest rate set monthly in advance, targeting the prevailing yield of the underlying bank deposits and US Treasuries. This provides investors with a competitive return on their investment.

• Accessibility: USDY is accessible to non-US individual and institutional investors, allowing for global participation and diversification.

• Regulatory Clarity: USDY is designed to operate within traditional finance regulatory frameworks, ensuring that investors have clear guidelines and protections.

• Flexibility: USDY can be minted and redeemed on any business day, providing investors with liquidity and flexibility in their investment decisions.

• Security: USDY is overcollateralized by an approximately 3% first loss position funded partially by Ondo Finance, creating a strong alignment between USDY and Ondo Finance. This overcollateralization also provides a buffer for short-term price decreases in the US Treasuries.

These strengths make USDY an attractive option for investors seeking a stable and yield-generating asset with robust protections and transparency.

Ondo US Dollar Yield (USDY) involves substantial risks. There can be no assurances that a USDY Token holder will not incur losses, including total loss of their investment in USDY Tokens. The risks are speculative and subject to inherent uncertainties, changes in circumstances, and forward-looking statements that may not materialize. Actual results and financial condition may differ materially from those indicated in the forward-looking statements.

• Nathan Allman: CEO of Ondo Finance, leading the development and integration of USDY across various blockchain networks.