Ondo US Dollar Yield

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Discover Ondo US Dollar Yield's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Ondo US Dollar Yield?

Ondo US Dollar Yield (USDY) is a tokenized note secured by short-term US Treasuries and bank demand deposits. It is designed to provide non-US individual and institutional investors with a stablecoin-like accessibility and high-quality, US dollar-denominated yield.

How is Ondo US Dollar Yield used?

Ondo US Dollar Yield (USDY) is a tokenized note secured by short-term US Treasuries and bank demand deposits. It offers a variable interest rate, currently set at 5% APY, and is designed to provide global accessibility and yield with institutional-grade investor protections. USDY can be minted and redeemed daily, with a 40-50 day transferability delay after initial issuance. It is available for both individual and institutional investors, who can onboard quickly and undergo KYC/KYB processes for minting and redemption.

How do I store Ondo US Dollar Yield?

To store Ondo US Dollar Yield (USDY) tokens, you have several options:

  1. KuCoin Account: You can hold your USDY tokens in your KuCoin account. This provides quick access to trading products like spot and futures trading, staking, and lending. KuCoin serves as the custodian of your crypto assets, ensuring security and convenience. Make sure to set up a strong password and upgrade your security settings to prevent unauthorized access.

  2. Non-Custodial Wallets: For enhanced security and control, you can withdraw your USDY tokens to a non-custodial wallet. This includes hardware wallets, Web3 wallets, or paper wallets. This option grants you complete control over your private keys but may be less convenient for frequent trading or lending activities. Be sure to store your private keys securely to avoid losing access to your tokens.

  3. DeFi Wallet: You can also store USDY tokens in a DeFi wallet, which allows you to interact with decentralized exchanges and other DeFi platforms. This option provides flexibility and control over your tokens but requires you to manage your own private keys and security.

Each method has its pros and cons, so choose the one that best fits your needs and preferences.

How to buy Ondo US Dollar Yield?

To buy Ondo US Dollar Yield (USDY) tokens, follow these steps:

  1. Find a Decentralized Exchange (DEX): Look for DEXs where USDY is listed. This can include platforms like Binance or Gate.io.
  2. Create and Set Up a DeFi Wallet: Create a decentralized finance (DeFi) wallet to store your USDY tokens. Ensure it is compatible with the chosen DEX.
  3. Fund Your DeFi Wallet: Deposit funds into your DeFi wallet to use for purchasing USDY tokens.
  4. Connect to the DEX: Connect your DeFi wallet to the chosen DEX to access the USDY market.
  5. Buy USDY: Use your funds to buy USDY tokens on the DEX.

Please note that USDY is only available to non-US individual and institutional investors, and there are specific limitations and requirements for onboarding and redeeming USDY tokens.

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History of 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.

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How Ondo US Dollar Yield works

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:

Subscriptions

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.

Redemptions

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

Transfers

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.

Key Features

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.

Integration and Accessibility

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.

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Ondo US Dollar Yield's strengths

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's risks

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.

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Did Ondo US Dollar Yield raise funds?

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Ondo US Dollar Yield’s team

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

Whalee AI

The fundamental analysis assistant for crypto value investors.

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