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ONDO Gains Momentum: 6% Price Increase as MANTRA Introduces USDY RWA Vault

MANTRA Unveils USDY Vault Backed by Ondo, Boosting ONDO Price by More Than 6%

MANTRA has just launched a cutting-edge savings vault, backed by Ondo and utilizing the USDY token. This exciting development has given a positive jolt to Ondo’s market price, resulting in a 6% increase.

This new product from MANTRA is set to deepen the pool of real-world asset (RWA) tokens, a rapidly growing segment in decentralized finance (DeFi) that’s drawing in institutional investors.

Bridging Traditional Finance with DeFi: The USDY and Ondo Collaboration

The release of the USDY, linked to Ondo’s tokenized note with returns tied to short-term US Treasury yields, marks a significant step towards merging traditional finance with DeFi.

USDY Vault Details and MANTRA Chain Integration

The USDY token will be the native asset on the soon-to-launch MANTRA Chain, expected to go live by year-end. In preparation, MANTRA and the Ondo Foundation are developing a multi-chain vault supporting Ethereum and Base networks.

This vault allows participants to hold USDC and earn yields generated primarily from US Treasury notes.

Community Engagement and Liquidity Strategy

To enhance appeal, MANTRA and Ondo have proposed an engagement-driven schedule to ensure return dilution doesn’t occur with increasing investor numbers. The vault release is timed strategically to secure adequate liquidity before the MANTRA Chain’s mainnet launch.

Institutional Features and Market Reaction

The USDY integration targets institutional investors by incorporating over-collateralization, third-party supervision, and robust customer protection measures. These elements bolster confidence and stability within the RWA marketplace, a key aspect of USDY’s financial innovation.

The market has responded positively to this announcement. Despite a bearish start to the day, ONDO’s price surged, trading at $1.29 with a 5.69% increase, showcasing bullish momentum following the news.

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