Flux Finance goes live today, bringing the yield from US Treasuries to investors. Flux Finance is a lending protocol forked from Compound v2. The protocol connects the on-chain and off-chain worlds by supporting both permissionless assets such as stablecoins, as well as permissioned assets like tokenized securities.
At present, lenders can provide stablecoins like $USDC and $DAI to earn yield, while borrowers can use tokenized treasuries as collateral. The tokenized treasuries offered at launch come in the form of $OUSG, the Ondo Short-Term U.S. Government Bond Fund, which invests exclusively in Blackrock’s iShares Short Treasury Bond ETF (SHV). A lender who supplies $USDC will receive fUSDC, which can be freely transferred.
Flux Finance was initially developed by Ondo Finance and has now become an autonomous protocol with upgrades governed by $ONDO holders through the Ondo DAO. The supported assets and parameters for Flux were selected in a genesis vote that saw over 500 $ONDO investors participate.
Ondo Finance is a decentralized investment banking protocol, it has launched a tokenized fund that allows stablecoin holders to invest in bonds and US Treasuries. The tokenized fund offers three separate share classes: US Government Bond Fund (OUSG), Short-Term Investment Grade Bond Fund (OSTB), and High Yield Corporate Bond Fund (OHYG). The investment adviser, Ondo Capital Management, facilitates the purchase and sale of these ETFs and charges a 0.15% per annum management fee.
DeFi
Lending
