4.35% APY On-Chain T-Bill Yield, No KYC. Too Good to Be True?

[bwy]

Has anyone looked into USDY by Ondo Finance?

It's a tokenized version of short-term U.S. Treasuries. Assets are managed by BlackRock, fully audited, and it's available on-chain (Solana, Ethereum).

You can swap in and out like any stablecoin, and it offers ~4.35% APY ”” with the yield built into the token price over time. No KYC needed for on-chain trading.

https://ondo.finance/usdy

Curious if anyone here has used it

 

[forward]

bwy said:
Has anyone looked into USDY by Ondo Finance?

It's a tokenized version of short-term U.S. Treasuries. Assets are managed by BlackRock, fully audited, and it's available on-chain (Solana, Ethereum).

You can swap in and out like any stablecoin, and it offers ~4.35% APY ”” with the yield built into the token price over time. No KYC needed for on-chain trading.

https://ondo.finance/usdy

Curious if anyone here has used it
Click to expand...

well, ondo seems legit

the thing is the reg banks are offering nowadays around 4% on savings/term deposits, so is it worth the hustle? if it would be at least 5+...

 

[toums]

Or even currently 6.5% in USD on Kraken (locked for 30 days, otherwise 4.25%).

 

[Martin Everson]

bwy said:
You can swap in and out like any stablecoin, and it offers ~4.35% APY ”” with the yield built into the token price over time. No KYC needed for on-chain trading.

https://ondo.finance/usdy

Curious if anyone here has used it
Click to expand...

What is the point of this service...lol? Have I missed something?

How it Works​

https://docs.ondo.finance/general-access-products/usdy/how-it-works

Onboarding & KYC​

https://docs.ondo.finance/general-access-products/usdy/faq/onboarding-and-kyc


The onchain nature makes no sense considering the KYC tax forms etc that need to be completed for purchase and redemption. This solution is not decentralized in any way and 40 day transfer restriction etc makes this clunky and slow. I am trying to find a usecase for anyone wanting to use this service. Better of just using a broker or bank with a good APY.

P.S One can just provide liquidity to Raydium pair USDC/USDT on Solana and get a faster, safer, higher, no hassle no KYC yield.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[bwy]

Martin Everson said:
What is the point of this service...lol? Have I missed something?

How it Works​

https://docs.ondo.finance/general-access-products/usdy/how-it-works

Onboarding & KYC​

https://docs.ondo.finance/general-access-products/usdy/faq/onboarding-and-kyc


The onchain nature makes no sense considering the KYC tax forms etc that need to be completed for purchase and redemption. This solution is not decentralized in any way and 40 day transfer restriction etc makes this clunky and slow. I am trying to find a usecase for anyone wanting to use this service. Better of just using a broker or bank with a good APY.

P.S One can just provide liquidity to Raydium pair USDC/USDT on Solana and get a faster, safer, higher, no hassle no KYC yield.
Click to expand...

It's like Tether/Circle ”” you need KYC to mint or redeem from the source, but you can swap in and out freely on-chain via DEXs like Jupiter with no KYC.

For example, I can swap $100K USDC into USDY on Jupiter, no KYC. Hold it, let the yield accrue, and swap back out to USDC whenever.

 

[Martin Everson]

bwy said:
It's like Tether/Circle ”” you need KYC to mint or redeem from the source, but you can swap in and out freely on-chain via DEXs like Jupiter with no KYC.

For example, I can swap $100K USDC into USDY on Jupiter, no KYC. Hold it, let the yield accrue, and swap back out to USDC whenever.
Click to expand...

I know this but this USDY has next to no liquidity...lol. Have you even looked into that? $100k transaction would move the entire market in USDY/USDC....lol. You may lose 10% or more on the market move when swapping making the 4.35% yield a joke...lol. The service is pointless at this point.

https://coinmarketcap.com/currencies/ondo-us-dollar-yield/

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[wellington]

bwy said:
Has anyone looked into USDY by Ondo Finance?

It's a tokenized version of short-term U.S. Treasuries. Assets are managed by BlackRock, fully audited, and it's available on-chain (Solana, Ethereum).

You can swap in and out like any stablecoin, and it offers ~4.35% APY ”” with the yield built into the token price over time. No KYC needed for on-chain trading.

https://ondo.finance/usdy

Curious if anyone here has used it
Click to expand...

Check if there's a freeze option