MANTRA has introduced a new product that has significantly increased the value of ONDO tokens by 5%. This product is expected to enhance the real-world asset (RWA) tokens sector in decentralized finance (DeFi), attracting more institutional investors.

MANTRA's latest offering, USDY, leverages Ondo's tokenized note, tying returns to short-term US Treasury yields. This move represents a significant step in merging traditional finance with DeFi.

Details on the USDY Vault and MANTRA Chain Integration

The new protocol introduces USDY as the native asset for the soon-to-be-launched MANTRA Chain, which is anticipated to go live by the end of the year. In preparation for this launch, MANTRA and the Ondo Foundation are developing a multi-chain vault that will be compatible with the Ethereum and Base networks.

This vault allows participants to hold USDC and receive returns generated mainly from US Treasury notes.

Community Engagement and Liquidity Management

To make the product more attractive, MANTRA and Ondo have proposed a refined engagement schedule that increases rewards based on community participation. This strategy is designed to prevent return dilution as the number of investors grows. The vault release is timed to ensure sufficient liquidity before the MANTRA Chain's operational launch.

Institutional Appeal and Market Response

The USDY integration is aimed at institutional investors, featuring over-collateralization, third-party oversight, and strong customer protection measures. These elements provide stability and confidence in the RWA market, enhancing USDY's appeal as a financial innovation.

The market has responded positively to this news. Despite starting the day on a bearish note, ONDO's price surged by 5.84%, reaching $1.25 at the time of writing.

In conclusion, MANTRA's launch of the USDY Vault has positively impacted ONDO's market performance, showcasing the potential of integrating traditional finance with DeFi to attract institutional investors and provide robust financial solutions.