In a landmark development, MANTRA, a leading player in the real-world asset (RWA) tokenization sector, has announced the launch of a revolutionary RWA savings vault in collaboration with Ondo. This strategic partnership is set to provide deep liquidity support for RWA tokenization, an area of decentralized finance (DeFi) that has garnered significant interest from institutional investors this year.

The RWA savings vault, powered by Ondo's flagship interest-bearing tokenized note, USDY, is expected to debut later this year on MANTRA's blockchain. USDY offers holders exposure to short-term US Treasury yield while maintaining the utility of stablecoins. This innovative product has been designed to provide institutional-grade investor protections, overcollateralization, and third-party oversight, making it a keystone asset for the burgeoning RWA ecosystem.

To celebrate this significant milestone, MANTRA and the Ondo Foundation are incentivizing a multi-chain vault, offering users who contribute USDC to the vault immediate access to high-quality yield. Additionally, users who remain in the vault until MANTRA Chain's mainnet launch will receive ONDO tokens and mainnet OM coins, further enhancing the yield. The vault is expected to open to the public in June on Ethereum and Base.

To prevent the dilution of returns as participation grows, MANTRA and the Ondo Foundation have structured a ratcheting schedule of increasing rewards to be paid out as community participation milestones are met. This innovative approach aims to bring DeFi composability and institutional-grade finance together on-chain, marking a significant step forward in the adoption of DeFi by institutional investors.

The partnership between MANTRA and Ondo is a testament to the growing interest in RWA tokenization and the potential it holds for institutional investors. As the DeFi landscape continues to evolve, collaborations like this are expected to play a significant role in shaping the future of finance. With its robust features and institutional-grade investor protections, USDY is poised to become a leading asset in the RWA ecosystem, offering investors a unique opportunity to tap into the potential of DeFi.