[If you also want to learn how to buy U.S. stocks and bonds, come explore with me ʚ🍍ɞ]

Seeing that Ondo has launched on @RobinhoodApp today, let's take the opportunity to analyze the experience of using @OndoFinance.

In summary, buying U.S. Treasury bonds on-chain can also leverage DeFi (with a $500 entry threshold).

The Ondo page opens to the One World Trade Center in Manhattan; the first time I thought I had clicked into some Wall Street bonds, it is indeed the most compliant RWA in the crypto space.

Ondo has indeed brought Wall Street onto the chain. Can we enjoy the stable returns of hard assets like bonds and stocks while also enjoying the freedom of the blockchain? This is the problem Ondo is trying to solve.

🍍 1️⃣ Project Positioning: Building a bridge connecting both ends.

Ondo's ambition is not to be an island but to be a 'full-stack' RWA financial platform. In this ecosystem, you can see functions aimed at professional institutions—compliance, custody, cross-chain channels—as well as yield-bearing stablecoins that ordinary users can participate in. Its core vision is:

Bringing high-quality real assets like U.S. Treasury bonds and stocks onto the blockchain, transforming them into compliant tokens that can be freely combined and transparently verified.

Simultaneously building an independent Layer-1 public chain (Ondo Chain) that allows these assets to circulate natively across chains, free from single-chain limitations.

Through modules like Global Markets, Flux, and USDY/OUSG, a one-stop experience for asset issuance, lending, liquidity, and yield management is achieved.

In one sentence: Packaging the play of banks + DeFi onto the blockchain, balancing regulation and on-chain efficiency.

🍍 2️⃣ Ondo Chain: Both open and compliant.

It needs to be both open and compliant, which sounds contradictory. Ondo Chain's approach is to incorporate permission systems at the L1 level: Validators mostly come from compliant institutional asset management firms, KYC-friendly, and regulatory-friendly. Its features include:

Asset diversification: Supporting both RWA (U.S. Treasury bonds, stocks, etc.) and DeFi assets.

Native cross-chain: Compatible with EVM/non-EVM multi-chains, making asset circulation more efficient.

Open ecosystem: Developers and users can freely issue assets, develop applications, and participate in lending and staking.

Safe and transparent: On-chain automatic verification of asset prices and reserve proof, preventing information asymmetry.

The overall positioning is to find a balance between 'compliance + liquidity', having regulatory endorsement while retaining on-chain experience.

🍍 3️⃣ RWA Products: A combined approach of GM and Flux

Entering the second layer: How to make real assets on-chain 'come alive'? Here are two important modules:

Global Markets (GM): This is a 'core securities asset on-chain' platform. It supports 1:1 pegged tokens for thousands of stocks, bonds, and ETFs, allowing you to buy, sell, collateralize, and settle traditional securities just like in DeFi. Available globally 24/7 at low costs. It also offers API interfaces for easy wallet and platform integration.

Flux: This is Ondo's RWA lending module. You can collateralize security tokens on GM to obtain stablecoin liquidity. GM is responsible for 'asset onboarding and configuration', while Flux takes care of 'collateralized lending and liquidity release', forming a closed-loop of funds.

This set of combined strategies allows traditional assets to not only circulate on-chain but also participate in DeFi returns and leverage plays, maximizing capital efficiency.

🍍 4️⃣ Yield-based USD: Allowing ordinary users to enjoy the dividends of U.S. Treasury bonds.

For most people, 'yield-based USD' is the most direct entry point. Ondo launches:

USDY: The underlying assets are short-term U.S. Treasury bonds and bank deposits, aimed at most regions globally, with visible returns, suitable for long-term holding and DeFi collateralization.

rUSDY: Pegged to $1, distributing new tokens daily based on returns, suitable for high-frequency circulation and corporate settlement. Convertible with USDY.

OUSG: A 'money market fund' aimed at institutions and high-net-worth clients, with high entry thresholds, and the underlying assets are U.S. Treasury funds, money market funds, etc.

Users can purchase USDY/OUSG using USDC/USD fiat after completing KYC.

Compared to traditional U.S. Treasury funds, USDY has a lower entry threshold, intuitive returns, and circulates directly on the blockchain, allowing for both transfer settlement and DeFi collateralization.

🍍 5️⃣ Advantages and Challenges

Ondo's competitive advantage is evident: USDY/rUSDY gives ordinary users the opportunity to participate in U.S. Treasury bond returns, backed by institutional/compliance moats and liquidity support.

But challenges also exist:

For example, high compliance complexity: Issuing assets across regions and regulations requires continuous investment in compliance resources.

Minting delay experience: Users need to wait 45 days after subscription to receive USDY tokens, which is a challenge for DeFi users accustomed to instant experiences.

It is not easy to meet the rapid iteration of DeFi while complying with regulations.

🍍 6️⃣ Outlook: Next-generation financial infrastructure?

Overall, Ondo is attempting to create a complete RWA financial infrastructure: from the underlying chain (Ondo Chain) to asset issuance (GM), lending liquidity (Flux), yield management (USDY/OUSG), each link is interlocked. In the current regulatory tightening environment, where users have increasingly high demands for asset security, it undoubtedly has a first-mover advantage.

Thank you for watching today's Flying Pineapple channel :->