Ondo's market price has seen a significant increase of 5% following the announcement of MANTRA's new USDY-backed RWA savings vault, which is expected to launch by the end of the year.

MANTRA's New Savings Vault

MANTRA has introduced a new savings vault that utilizes Ondo's tokenized note, which is linked to short-term US Treasury yields. This move has positively impacted Ondo's market price, showing a 5% increase.

Integration of Traditional Finance

The new protocol includes USDY as the native asset on the upcoming MANTRA Chain, which is expected to integrate traditional finance into decentralized finance (DeFi). The vault will be available on both the Ethereum and Base networks, allowing participants to hold USDC and receive a yield generated from US Treasury notes.

Community Engagement and Refined Schedule

MANTRA and Ondo have proposed a refined schedule that adjusts the stakes based on community engagement to prevent return dilution. This is done to ensure adequate liquidity before the operational advancement of the MANTRA chain.

Institutional Features and Market Response

The integration of USDY targets institutional investors, offering features such as over collateralization, third-party supervision, and strong customer protection provisions. These elements contribute to confidence and stability within the RWA marketplace, which in turn is a key component of USDY as a financial innovation.

Market Response

The market has responded positively to this news, with Ondo's price increasing following the announcement. Despite a bearish start to the day, Ondo's price recovered, trading at 5.84% to $1.25.