- Ondo Finance partners with Drift Protocol for RWA integration on Solana, using USDY as collateral, boosting DeFi markets.
- Ondo Finance partners with Drift Protocol to integrate RWAs on Solana.
- USDY, backed by U.S. Treasury bills, to serve as collateral on Drift.
- Despite partnership, ONDO price dips by 3.78% amidst market sell-off.
Discover how Ondo Finance’s partnership with Drift Protocol is set to revolutionize DeFi markets through the integration of RWAs on Solana using USDY as collateral.
Ondo Finance and Drift Protocol Collaborate for RWA Integration
Ondo Finance has taken a significant step in the DeFi landscape by partnering with Drift Protocol to integrate real-world assets (RWAs) on the Solana blockchain. This collaboration aims to enhance the trading and capital markets by utilizing USDY, a stablecoin collateralized by U.S. Treasury bills, as collateral on Drift’s marketplace.
The Function of USDY in Expanding DeFi Horizons
In an announcement dated June 18, Ondo Finance revealed that USDY would be accepted as collateral on Drift Protocol’s platform. This development marks a milestone in DeFi as it introduces yield-generating assets to be used in perpetual contracts. According to Cindy Leow, co-founder of Drift Protocol, “Ondo is an excellent partner for Drift because this partnership helps us on our way to making a completely on-chain trading platform where people can trade with any asset as collateral.”
The integration is expected to boost trading volume and liquidity within the Drift ecosystem, offering users new opportunities for margin trading and borrowing. Moreover, the use of RWA-based tokens in DeFi can provide traders with more diverse and reliable collateral options.
Significance of USDY in Expanding DeFi Markets
USDY, which is backed by short-term U.S. Treasury bills and offers a 5.30% annual yield, serves as a critical bridge connecting traditional finance with decentralized finance (DeFi). This unique positioning allows Ondo Finance and Drift Protocol to tap into new opportunities, enabling traders to earn returns on their investments while using them as collateral for trading.
However, it’s worth noting that USDY is not available to U.S. citizens or within the United States due to regulatory constraints under the United States Securities Act. This limitation may impact the adoption and growth of USDY in the global DeFi markets.
The Current Landscape and Price Movement of ONDO
The recent partnership announcement hasn’t shielded Ondo (ONDO) token from the ongoing market volatility. Over the past 24 hours, the price of ONDO has experienced a bearish trend, fluctuating between an intra-day high of $1.14 and a low of $1.01. At the time of writing, ONDO is trading at $1.09, reflecting a 3.78% decline from recent resistance levels.
Additionally, ONDO’s market capitalization has decreased by 3.67% to $1,512,746,030. Interestingly, the 24-hour trading volume has surged by 37% to $392,144,095, indicating an accumulation phase as traders capitalize on the price dip to buy in.
Conclusion
The partnership between Ondo Finance and Drift Protocol heralds a new era for DeFi by integrating real-world assets on the Solana blockchain. With USDY being used as collateral, there are substantial opportunities for enhancing trading volume and liquidity. However, the price of ONDO remains under pressure amidst the broader market sell-off. Moving forward, the regulatory limitations on USDY may pose challenges, but the innovative collaboration between the two entities promises significant advancements in the DeFi space.
