Tokenized T-Bills but Permissionless

A wave of permissionless products

The tokenized public security market that we track is now $343M (see the dashboard) with 6% growth MoM. While it looks like quiet, people where busy building and in September we saw the launch of 3 permissionless token (OSDY, USDM, stEUR) that we discuss below.

Speech at mainnet

I gave a speech at Mainnet at the Suits vs Hoodies panel by Centrifuge on the importance of becoming permissionless, the prepared notes are here.

Permissionless yield is coming, now the question is: will be market be willing to use it?

Readers already know about Backed bIB01 that replicate the IB01 BlackRock ETF one to one. This is the best permissionless performing on-chain money market instrument but has transaction costs (0.2% subscribe/redeem) and price fluctuation (albeit very small). We have 2 new products launching (see below). Also Angle is launching stEUR which gives 4% permissionless on agEUR.

Ondo USDY

• Website

• Token

Ondo OSDY is a debt instrument which rate is set by Ondo USDY LLC (the SPV) currently providing 5% APY. It is overcollateralized by 2% of equity. USDY is permissionless but only minted 40 days after subscription.

Disclaimer: I’m independent director of the SPV.

USDY on-chain presence is still very lite (minting stated only a few days ago) but there is 30M AuM in the cooking token (which should come on-chain within 40 days). For a time I will be in top 5 :-)

Moutain Protocol USDM

• Website

• Token

Mountain Protocol is a interest bearing stablecoin issued under Bermuda regulation that allows stablecoin to provide a yield. The token value if always $1 and the token quantity increase every day with a yield of currently 5%. It launched very recently so there is not yet a lot of activity of liquidity pools.

Disclaimer: Steakhouse is signer.

Angle stEUR

Angle Protocol has launched stEUR which is providing 4% APY for agEUR. There is no additional risk beyond a very simple smart contract (same as sDAI for DAI).

It will be very interesting to follow as agEUR is the leading EUR-stablecoin on Decentralized Exchanges. I would expect a shift to stEUR as the main pair vs agEUR. It is functionally the same (as you can move from agEUR to stEUR and the reverse seamlessly) but with better yield.

Disclaimer: Steakhouse is advisor.