Ondo Finance and Pyth Network are pioneering advancements in decentralized finance (DeFi) through their integration of institutional assets across over 65 blockchain ecosystems. Their partnership aims to enhance on-chain accessibility to traditional assets, significantly benefiting smart contract developers and DeFi users.
DeFi holds the promise of revolutionizing capital markets and the financial industry by providing decentralized access to traditional assets. To achieve this vision, on-chain users require seamless access to these assets across various blockchain and decentralized applications.
Ondo Finance, known for its tokenized real-world assets, has joined forces with Pyth Network to bring this vision to life. Their collaboration has resulted in the launch of the USDY/USD price feed by Pyth, now available across more than 65 blockchain ecosystems. This development enables smart contract developers globally to leverage real-time feeds for Ondo’s yieldcoin, USDY.
This collaboration opens new opportunities for developers and projects to integrate institutional assets on-chain, thereby enhancing DeFi’s potential. Pyth Network’s over 100 first-party data providers are set to support more real-world assets as demanded by Web3 developers.
The USDY Token: A Stable, Yield-Generating Asset
Ondo’s US Dollar Yield (USDY) is a tokenized note backed by short-term US treasuries, offering a stable, yield-generating alternative to traditional stablecoins. By merging the benefits of on-chain finance with the stability of traditional assets, USDY provides sustainable yields for both institutional and individual market participants in on-chain capital markets. Supported by secure and liquid assets, USDY exemplifies the fusion of traditional and decentralized finance.
The launch of the Pyth USDY/USD price feed extends USDY’s reach to ecosystems such as Ethereum Virtual Machine (EVM), Solana, Move, Bitcoin, and Cosmos. This partnership is designed to create a unified and interoperable DeFi experience, overcoming the fragmented nature of blockchain ecosystems.
Enhancing DeFi Through Multi-Chain Synergies
The widespread activation of the USDY/USD feed across over 65 blockchains enables diverse on-chain applications to establish markets for USDY. This broad availability of key assets fosters a more composable and dynamic DeFi landscape. The presence of the USDY/USD feed across multiple blockchains allows DeFi applications to expand their reach and serve new user bases, breaking down silos in the blockchain world and promoting the free movement of assets across different chains.
The integration of traditional finance into DeFi through this development is crucial for bringing enhanced liquidity, security, and stability. By incorporating traditional assets on smart contract platforms, Ondo Finance is paving the way for more sophisticated DeFi products and services.
Real-Time Data for Enhanced Market Opportunities
Pyth Price Feeds provide updates at sub-second speeds, enabling on-chain users to track traditional capital markets in near real-time. This feature levels the playing field between DeFi and CeFi (Centralized Finance) solutions, opening new market opportunities. Oracle feeds for key assets are vital for blockchain foundations to grow their ecosystems, attract developers, and better serve users.
Ecosystem Collaborations
Several blockchain foundations and DeFi protocols are among the first to utilize the new Pyth USDY/USD feed. Aptos, Solana, and Mantle are key collaborators in this initiative.
Aptos: Collaborating with Ondo Finance to tokenize real-world assets, with Pyth Price Feeds accelerating this initiative.
Solana: Ondo Finance has expanded its US Treasury-backed assets to the Solana ecosystem, supported by Pyth oracle feeds to enhance Solana’s Layer 1 offerings.
Mantle: Working with Ondo Finance to further the real-world asset (RWA) movement, bringing sustainable yields to the DeFi ecosystem.
Integration with DeFi Protocols
Several Pyth ecosystem partners are already integrating this price feed, expanding its reach and utility. These include:
Drift: A dynamic AMM-based perpetual futures DEX on Solana.
FlashTrade: Asset-backed trading with on-demand liquidity on Solana.
Thala: A DeFi HyperApp and liquidity engine on Aptos.
DePerp: A perpetual trading mini-app on Telegram and web app on Base.
Looking Ahead
Pyth Network and Ondo Finance continue to support smart contract developers in creating more accessible and sophisticated decentralized finance solutions. By driving innovation in DeFi and integrating institutional assets, they are poised to significantly impact the future of finance, promoting a more inclusive and dynamic financial ecosystem.
This strategic partnership between Ondo Finance and Pyth Network marks a significant step toward the seamless integration of traditional and decentralized finance, fostering a robust and interconnected DeFi landscape.