Ondo Finance Initiates Campaign to Boost USDY Stablecoin Adoption

Ondo Finance has unveiled a new campaign utilizing Sui's NAVI Protocol to promote the usage of its yield-bearing stablecoin, USDY.

Ondo Finance (ONDO) has teamed up with NAVI Protocol to roll out a campaign from Feb. 26 to March 12, aimed at increasing the adoption of its stablecoin USDY. This tokenized US Treasury yield coin, offered by Ondo Finance, allows participants to earn rewards by providing liquidity through depositing USD into NAVI Protocol.

Participants accumulate points based on their liquidity contributions, making them eligible for a portion of the rewards, which will be distributed in NAVX and USDY. The campaign features a $35,000 total reward pool. The top 100 participants will divide $10,000, while an extra $25,000 will be shared among 2,500 more winners.

USDY is a unique type of stablecoin created by Ondo Finance that generates daily interest. Unlike traditional stablecoins such as Tether (USDT) or USD Coin (USDC), which simply maintain their value, USDY is backed by US Treasury bills and bank deposits. Since it's supported by yield-generating assets, it automatically produces yield for its holders. This essentially makes USDY an on-chain alternative to holding cash in a savings bank account or investing in money market funds.

Because USDY generates yield without necessitating staking or locking, it's gaining popularity in DeFi as an appealing stablecoin alternative, enabling users to earn yield without the risks associated with crypto volatility. Additionally, as it operates on the blockchain, it can be utilized in DeFi for lending and borrowing.

USDY was first introduced on the Sui blockchain in March 2024. Later, it was extended to other networks, launching on the Cosmos ecosystem via Noble in July 2024, the Aptos blockchain in Dec. 2024, and Arbitrum (ARB) in August 2024. Earlier in Feb., USDY also debuted on the Stellar (XLM) network, with plans to launch on additional networks in the coming months.

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Several protocols on Sui, including Aftermath Finance, Cetus, Typus Finance, Bucket Protocol, Turbos, and KriyaDEX, have integrated USDY, apart from NAVI Protocol.

Among other DeFi platforms, USDY has been integrated on BounceBit and Injective (INJ), enabling users to easily access USDY's yields. Drift Protocol has enabled users to use USDY as collateral for perpetual trading on Solana (SOL).

As of Feb. 26, USDY has a market capitalization of approximately $382 million, according to Coinmarketcap.

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