Hydro Integrates Ondo USDY
We are thrilled to announce that Hydro is a launch partner for USDY on Cosmos. As Ondo Finance’s USDY becomes officially integrated into Injective, Hydro users can now gain access to the market-leading yield coin, making Hydro the first LSDFi & RWA management protocol on Injective Network.
Introduction to Ondo Finance
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 other blockchain solutions.
Ondo’s first core products are tokenized cash equivalents that deliver lower risk, high quality yield from US 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.
The USDY Token
USDY is a yieldcoin secured by short-term US Treasuries. USDY is accessible to non-US individual and institutional investors and enjoys similar utility to stablecoins. USDY offers stable, high-quality yield, currently 5.3% APY.
USDY Integration with Hydro Protocol
The integration of USDY into Injective, allows for protocol dapps such as Hydro Protocol to adopt a RWA strategy.
In Hydro, USDY will be widely adopted as a core component to our Real Yield Asset (RYA).
RYA is a key financial product within Injective’s LSDFi ecosystem, serving as the converging point of RWA (Real World Assets) and CWA (Crypto World Assets).
It provides users unique access to multiple yields in one product, functioning similarly to an ETF in the traditional equity market. The underlying can take multiple forms depending on the return profile and strategy. This product will be aggregated into an LP token, enhancing the overall yield strategy.
Examples of Components in RYA
- Revenues from Restakeable Liquidity Pool Tokens (LRP)
- APY from Staking
- Yield from Collateralized USDY
The USDY Fit
Unlike some DeFi products that often suffer from yield depletion, the US Treasury backed USDY yieldcoin offers an alternative to stablecoins that provides a stable yield strategy within the RYA product offered by Hydro. USDY will play a dominant role in the low-risk component of the RYA.
Hydro Protocol is making significant advances in treading in the RWA world. We are already engaged in numerous conversations with various RWA projects to ensure maximum RWA strategy on Injective and Hydro Protocol. More is certainly to come.
Conclusion
Ondo Finance’s tokenization of US Treasuries along with Hydro’s innovative financial products will offer users unprecedented access to market-leading financial products.
Hydro brings RWA adoption into the Injective Network; all the while Ondo brings another strong use case of USDY in a mature market. We look forward to the mutual growth and success this launch will bring.
