As a seasoned analyst with over two decades of experience in traditional finance and blockchain, I find this partnership between Curve and Elixir to be a significant stride forward for decentralized finance (DeFi) and tokenized real-world assets (RWAs). My first encounter with Bitcoin felt like stumbling upon the secret underground lair of the future – a feeling that has only intensified as I’ve witnessed the meteoric rise of DeFi.
As a researcher, I am excited to share that I’m part of the team behind Curve, a decentralized exchange. Recently, we’ve partnered with Elixir, a blockchain network, to broaden access to Decentralized Finance (DeFi) for BlackRock’s tokenized money market fund. This collaboration was announced on November 29th.
Soon, token holders will have the opportunity to generate yield by creating Elixer’s stablecoin, deUSD, which can be backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). In simpler terms, this means that token holders will be able to produce a type of digital currency called deUSD, which is tied to the value of the U.S. dollar and can be supported by an institutional digital liquidity fund managed by BlackRock.
After that, they have the option to trade deUSD for various DeFi stablecoins such as USD Coin (USDC), Tether (USDT), or Frax, through Curve’s liquidity pools.
Institutions with up to $1 billion in real-world assets (RWAs) can now generate deUSD, an interest-earning equivalent of the U.S. dollar, according to Curve.
As a financial analyst, I can share that the decentralized exchange platform, Curve, currently accommodates around 60% of the total deUSD trading and liquidity, with approximately $64 million residing within its pools, as reported in the recent announcement.
Providing liquidity to the pools can yield rewards for liquidity providers, as mentioned by Curve. Furthermore, Elixir’s website highlights Annual Percentage Rates (APR) of up to 40% for certain deUSD stakeholders.
As per DefiLlama’s latest update on November 29, Curve has gained significant popularity as a leading decentralized trading platform, boasting approximately $2 billion worth of assets secured within it.
BlackRock’s tokenized money fund
Securitize has tokenized BUIDL, which is essentially a money market fund that principally buys short-term U.S. Treasury bonds (T-Bonds) and comparable low-risk assets yielding interest.
As an analyst, I find that the BUIDL token is currently leading in terms of managed assets among all tokenized Treasury funds, with a significant figure exceeding $540 million. The Franklin OnChain US Government Money Fund (FOBXX) comes in second place with approximately $450 million in assets under management (AUM).
On November 19th, Elixir revealed its intentions to introduce a Liquid Staking Token (LST) for projects like BUIDL and other security tokens that are tokenized.
The growth of tokenized RWAs
There’s a growing interest in exchangeable tokens (RWAs) that provide stable returns similar to Treasury bills and money market tools, with a focus on minimal risk.
As of November 29th, tokenized treasury products are currently managing around $2.5 billion in total value locked (TVL), a figure that has more than tripled since the beginning of 2024, according to data from RWA.xyz.
Worldwide, the aggregated value of tokenized Real Asset Wrappers (RAWs) is estimated to potentially reach a massive market opportunity amounting to $30 trillion, as per Colin Butler, Head of Institutional Capital at Polygon, during his conversation with CryptoMoon in an interview.
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2024-11-29 22:50