Drift Protocol, a decentralized and open-source exchange platform on the Solana blockchain, has announced a unique collaboration. According to the platform, it is partnering with Ondo Finance (an institutional-level financial protocol) to incorporate RWA collateral into Solana DeFi. The company took to the social media platform X to reveal the news of this development.
🌐 Marking the first time yieldcoins can be used as collateral on a perpetuals platform, we are excited to announce that $USDY is now available as collateral on @DriftProtocol. Welcome to the Ondo Ecosystem, Drift! 🌐
🌊 $USDY holders on @solana can now utilize their… https://t.co/r6CZGDVYm9 pic.twitter.com/OBHcP3winI
— Ondo Finance (@OndoFinance) June 18, 2024
Drift Protocol and Ondo Finance Partner for the Incorporation of the RWA Collateral
In its latest post, the platform labeled this endeavor as a unique effort in terms of its nature. It added that the collaboration integrates assets including treasury bills which are tokenized as collateral. It incorporates the respective assets on a perpetual forum in the form of collateral. In addition to this, Ondo Finance shared a comprehensive X post to provide the details of this initiative.
The company expressed its enthusiasm for the collaboration with Drift Finance. The platform noted in the post that this partnership enables the use of yield coins for collateral for the first time. As a part of the respective partnership, the $USDY token is currently available for collateral on Drift Protocol. Moreover, the people holding $USDY tokens on Solana can leverage yield-bearing coins for collateral.
With the respective collateral, they can deal with margin trading as well as perpetual contracts. In this way, they can enhance capital efficiency. Apart from that, the consumers can borrow and deposit the $USDY tokens on Drift. Cindy Leow, Drift Protocol’s co-founder, also commented on this development. As per Cindy, this endeavor plays a significant role in accomplishing the mission of the platform.
The Collaboration Offers Capital Efficiency to the Traders, Say Executives of Both the Partners
Cindy added that Drift has an objective of establishing a completely on-chain forum. According to the co-founder, the respective forum will permit the traders to trade all types of assets. In this respect, they will reportedly be free to utilize any collateral. Keeping that in view, the collaboration between Ondo Finance and Drift Protocol takes the company closer to its respective vision.
This adds extra utility to real-world tokenized assets and enhances the capital effectiveness for the traders. Ondo Finance’s COO and President “Justin Schmidt” also remarked on this joint endeavor. The executive stated that the integration of the $USDY token with Drift gives a substantial boost to capital efficiency. Hence, it facilitates the Solana-based perpetual users, indicating an exclusive epoch in DeFi.