In a notable development within the decentralized finance (DeFi) space, Ondo’s United States Dollar Yield token (USDY) has been integrated into the NAVI Protocol, a leading DeFi platform on the Sui blockchain. This integration is set to unlock new opportunities for tokenized real-world assets (RWAs) on Sui, a rapidly growing DeFi ecosystem.
USDY, a yield-bearing asset backed by US Treasuries, is not available for offer or sale in the United States or to US persons, as it has not been registered under the US Securities Act of 1933. Ondo USDY LLC, the issuer, is also not registered as an investment company under the US Investment Company Act of 1940. The integration with NAVI Protocol aims to leverage the increasing adoption of RWAs within the DeFi landscape on Sui.
NAVI Protocol’s Role in Sui’s DeFi Ecosystem
NAVI Protocol has established itself as a pivotal player in the Sui ecosystem, accounting for over 40% of the total value locked (TVL) on the blockchain. It offers a range of DeFi products, including robust lending markets and leverage vaults, making it a preferred choice for users seeking reliable DeFi strategies.
The integration of USDY into NAVI Protocol introduces a suite of on-chain opportunities for tokenized RWAs, enhancing yield maximization, lending, and borrowing capabilities. This development aligns with NAVI’s innovative approach to DeFi, which includes an advanced oracle system and a diversified network of oracles to ensure secure and reliable pricing for loans and liquidations.
Implications for DeFi Users and the Future of RWAs
The collaboration between Ondo and NAVI Protocol represents a significant step in bringing the benefits of RWAs to DeFi users on Sui. As tokenized real-world assets enter their next phase of growth, NAVI’s sophisticated DeFi offerings create a conducive environment for deploying USDY, one of the most widely adopted yield-bearing assets.
Sui, built with the Move programming language, has quickly risen to become the second-largest non-EVM DeFi ecosystem, with over $1 billion in TVL. The integration of USDY within NAVI Protocol is expected to further drive the adoption of RWAs and enhance the overall DeFi experience on Sui.
For more information on this integration, visit the official announcement here.
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