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]

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]

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 provide︀ liquidity to Raydium pair USDC/USDT on Solana and get a faster, safer, higher, no hassle︁ no KYC yield.

 

[bwy]

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

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

 

[Martin Everson]

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/

 

[Wellington]

Check if⁣ there’s a freeze option