🌎 Ondo Finance Boosts USDY Adoption

Ondo Finance Launches Campaign to Boost Adoption of Yield-Bearing Stablecoin USDY

Ondo Finance has launched a campaign in collaboration with Sui’s NAVI Protocol to drive the adoption of its yield-bearing stablecoin, USDY. The campaign, which runs from February 26 to March 12, offers participants a chance to earn rewards by supplying liquidity for USD on NAVI Protocol.

How the Campaign Works

Participants earn points based on their liquidity contributions, making them eligible for a share of the rewards, which will be paid in NAVX and USDY. The campaign has a total reward pool of $35,000, with the top 100 participants sharing $10,000 and an additional $25,000 distributed among 2,500 more winners.

What is USDY?

USDY is a special type of stablecoin created by Ondo Finance that earns daily interest. Unlike regular stablecoins like Tether (USDT) or USD Coin (USDC), which simply hold their value, USDY is backed by US Treasury bills and bank deposits. Because it’s backed by yield-generating assets, it automatically generates yield for its holders.

This effectively makes USDY an on-chain alternative to holding cash in a savings bank account or investing in money market funds. Since USDY earns yield without requiring staking or locking, it’s becoming an attractive stablecoin alternative in DeFi as it allows users to earn yield without taking on crypto volatility risks.

USDY Expansion

USDY was first introduced on the Sui blockchain in March 2023. Later, it was expanded to other networks, launching on the Cosmos ecosystem via Noble in July 2023, the Aptos blockchain in December 2023, and Arbitrum (ARB) in August 2023. Earlier in February, USDY also launched on the Stellar (XLM) network.

Integration with Other Protocols

Apart from NAVI Protocol, several other protocols on Sui, namely Aftermath Finance, Cetus, Typus Finance, Bucket Protocol, Turbos, and KriyaDEX, have integrated USDY. Among other DeFi platforms, USDY was integrated on BounceBit and Injective (INJ), offering users seamless exposure to USDY’s yields.

Drift Protocol enabled users to use USDY as collateral for perpetual trading on Solana (SOL). As of February 26, USDY has a market capitalization of around $382 million.