KEY TAKEAWAYS
- Ozean integrates USDM, a stablecoin by Mountain Protocol, into its Oxygen (O2) liquidity layer, enhancing its DeFi ecosystem.
- USDM offers a 5% APY and is backed by US Treasury bills, ensuring stability and security for users.
- Mountain Protocol’s collaboration with BlackRock and regulatory compliance bolster USDM’s credibility and yield potential.
- Ozean aims to revolutionize DeFi by incorporating Real World Assets (RWAs) in a compliant and interoperable manner.
Ozean, the blockchain platform for Real World Asset (RWA) yield, has announced the integration of USDM, a stablecoin by Mountain Protocol, into its Oxygen (O2) liquidity layer. This development was announced here.
USDM is a regulated, permissionless, and yield-bearing stablecoin offering a 5% annual percentage yield (APY). It is designed to maintain a value pegged to the US dollar, providing a reliable digital asset for transactions and savings. The stablecoin’s peg is maintained through primary customers buying and selling USDM at $1, and by holding short-term US Treasury bills as collateral in a bankruptcy-remote Special Purpose Vehicle (SPV) known as USDM Reserves Ltd.
The current total value locked (TVL) for USDM is $61 million, distributed across Ethereum, Arbitrum, Optimism, Polygon PoS, and Base networks. The integration into O2 is supported by Mountain Protocol’s collaboration with BlackRock’s BUIDL fund, facilitated through Securitize, BlackRock’s tokenization platform. This institutional backing enhances the security and yield potential of USDM within the Ozean ecosystem.
Institutional Backing and Regulatory Compliance
Mountain Protocol has received funding from notable investors such as Coinbase Ventures, Multicoin Capital, and Castle Island Ventures. Martin Carrica, CEO & Co-founder of Mountain Protocol, stated, “We’re pleased to bring USDM to Ozean’s O2 liquidity layer. This integration aligns with our goal of offering a transparent, yield-generating stablecoin within DeFi.” Mountain Protocol is regulated by the Bermuda Monetary Authority, ensuring compliance and safety for USDM holders through collateral proof of reserves and third-party attestations.
O2 is designed to provide liquidity for the Ozean ecosystem by combining various assets, including RWAs, tokenized treasuries, and yield-bearing tokens. USDM joins other assets in O2, supporting functionalities like swaps, lending, and collateralization. Jakob Kronbichler, CEO & Co-founder of Clearpool, commented, “Integrating USDM into O2 enhances our liquidity layer with a regulated, yield-bearing stablecoin.”
Ozean’s Vision for DeFi
Ozean aims to transform decentralized finance (DeFi) by integrating RWAs in a compliant manner, allowing users to earn native yield on-chain automatically. As a permissionless Ethereum Layer 2 with an optional compliance layer, Ozean fosters interoperability among permissioned protocols. The O2 liquidity layer features a dynamic rebalancing mechanism to maintain target allocations of its assets.
Launched by Clearpool, Ozean is powered by the CPOOL token and has originated over $640 million in loans since March 2022. The platform continues to attract a growing user base from both crypto and traditional finance institutions.
Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.