What is USDY?
USDY, also known as US Dollar Yield token, is a yieldcoin, which means that it accrues yield (interest). USDY accrues yield daily, which means holders can earn yield everyday whether staking it, borrowing or lending it, pledging it as collateral, or just holding it within a wallet. Because USDY accrues yield daily, the price of USDY increases over time. USDY is a permissionless yieldcoin that allows international, non-US, investors to get exposure to yield collateralized by short-term US Treasuries. USDY combines the global accessibility and utility of stablecoins with the investor protections, yield, and transparency of traditional institutional finance. USDY is also composable and permissionless. Neither stablecoins nor other yieldcoins offered all of these advantages. USDY can be used across a variety of use cases including lending & borrowing, cash management, payments, and more, all while earning yield for token holders. USDY is currently live across 8 blockchains and over 70 projects.
What are the key features of USDY?
- Permissionless: USDY can be transferred peer-to-peer without intermediaries, as well as being used for payments.
- Daily Yield: USDY offers daily accruing yield, providing interest on idle balances.
- Global Access: USDY provides access to the yield and relative stability of US Treasuries
- Composable: USDY can be used in Decentralized Finance (DeFi), letting holders earn yield while using USDY as collateral for onchain borrowing, lending, margin trading, perpetuals and more.
- Protected: USDY is designed for bankruptcy remoteness, is backed by US Treasuries, and provides token holders the benefit of a security interest in the collateral.
- Widely Available: USDY is available in over 100 countries and supported by the most widely used blockchains and DeFi projects globally, including Solana, Ethereum, Arbitrum, Aptos, Sui, Mantle, and Noble.
How does USDY work?
USDY is a digital dollar designed to keep its value stable while allowing users to earn passive income just by holding it. Created by Ondo Finance, USDY is fully backed by short-term U.S. Treasury bonds and cash deposits in regulated banks. These low-risk, interest-earning assets are what give USDY its value and yield.
What sets USDY apart from traditional stablecoins is its unique ability to generate daily yield. There’s no need for staking, locking, or any extra steps. As long as you keep USDY in your wallet, its value will gradually rise to reflect the interest from the underlying assets. This makes USDY a fantastic option for anyone looking for the stability of a dollar-pegged asset along with the perks of passive income.
USDY is also incredibly accessible. Investors from all over the globe, even those outside the U.S., can easily buy and hold USDY through authorized platforms. It provides a fresh way to earn yield in U.S. dollars without needing a U.S. bank account or traditional investment methods. Plus, USDY is liquid, meaning users can buy, sell, or redeem it daily without any restrictions.
In short, USDY presents a smart and secure way for users to safeguard their funds while earning daily returns, all thanks to the transparency and efficiency of blockchain technology.
USDY vs Stablecoins
How Does USDY Compare to Stablecoins?
While traditional stablecoins are primarily used to store value and facilitate transactions with minimal volatility, they typically do not generate any income. USDY, on the other hand, offers all the stability of a dollar-pegged asset plus the advantage of earning a daily yield. This makes USDY not just a stablecoin alternative but also a smart investment tool for yield-seeking users.
USDY offers daily yield creation supported by U.S. Treasury securities and cash deposits in addition to price stability, going beyond the usual use case of stablecoins. It is an effective tool for both individual and institutional investors due to its permissionless structure, wide blockchain compatibility, and smooth integration with DeFi platforms. USDY offers a clever, safe, and internationally accessible option whether your goal is to diversify your digital portfolio, generate passive income, or protect money. With ICRYPEX, you can quickly get started with USDY and start using your virtual money right away.
