KEY TAKEAWAYS
- Curve Finance strengthens its position as a key liquidity hub for deUSD and other stablecoins through integration with BlackRock’s BUIDL fund.
- Securitize bridges traditional finance and blockchain by tokenizing over $1 billion in institutional assets, including BlackRock’s fund.
- Elixir’s deUSD protocol, supported by Curve, facilitates the minting of yield-bearing synthetic dollars backed by stETH and U.S. Treasuries.
- Curve’s infrastructure plays a crucial role in merging traditional finance with DeFi, enhancing market stability and liquidity.
Curve Finance, a leading decentralized exchange for stablecoin trading, is poised to enhance its position as a primary liquidity hub for deUSD and other stablecoins. This development follows the integration of BlackRock’s $533 million BUIDL fund and other institutional funds tokenized by Securitize, which will soon access decentralized finance (DeFi) through Elixir’s deUSD protocol.
This collaboration unlocks significant potential, allowing up to $1 billion in institutional real-world assets (RWAs) to mint deUSD, a yield-bearing synthetic dollar. Currently, Curve hosts the majority of deUSD trading and liquidity, with approximately $64 million, or 60% of total liquidity, in Curve pools.
Institutional Integration into DeFi
Securitize, an SEC-registered platform, bridges traditional finance and blockchain by tokenizing real-world assets. The platform has already brought over $1 billion in institutional assets on-chain, with BlackRock’s BUIDL fund being a notable example. The BUIDL fund, which stands for BlackRock USD Institutional Digital Liquidity, offers a tokenized version of traditional dollar-based investments.
Elixir, a blockchain network specializing in orderbook exchange infrastructure, supports deUSD—a fully collateralized, yield-bearing synthetic dollar. This synthetic dollar is backed by a combination of stETH (used to create delta-neutral positions through ETH perpetual futures) and U.S. Treasuries via MakerDAO’s USDS T-bill protocol. Since its launch, deUSD has seen rapid adoption, with its supply growing to over $160 million in just four months.
Curve’s Role in the DeFi Ecosystem
Elixir has chosen Curve as its primary liquidity hub, with $64 million of their $110 million total liquidity available across four key trading pools on Ethereum. Liquidity providers earn a combination of rewards, marking a significant step in merging traditional finance with DeFi. This integration welcomes reliable institutional capital, making markets more stable and liquid for all participants.
Curve’s robust infrastructure is essential in facilitating this institutional adoption. By providing deep liquidity and efficient trading for deUSD, Curve acts as a vital bridge between traditional finance and DeFi. As more institutional assets like the BUIDL fund enter the ecosystem, Curve’s role as the primary venue for stablecoin liquidity continues to grow, benefiting both traditional and DeFi participants with enhanced trading opportunities and yields.
For more information, the announcement can be found here.
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