Flux Finance launches token pegged to US Treasury bonds
The platform’s users will be able to earn money by providing liquidity
09.02.2023 - 11:35
179
2 min
0
What’s the latest trend in Decentralized Finance? Yield farming backed by U.S. government debt.
Following the recent launch of Ondo Finance’s U.S. Treasury-backed Government Bond Fund (OUSG), Flux Finance has launched a decentralized lending protocol that allows users to deposit USDC or DAI into Flux’s protocol, which is backed by OUSG, and, in turn, receive fUSDC or fDAI, two derivative tokens representing the USDC and DAI on Flux.
Flux is a fork of the popular lending and borrowing protocol Compound, which holds billions of dollars in locked tokens as of Thursday.
Decentralized finance (DeFi) protocols like Flux rely on smart contracts instead of middlemen to provide financial services, such as lending and borrowing, to users. On the other hand, yield farming refers to users getting rewarded with a project's tokens for providing liquidity to that project.
The fUSDC and fDAI tokens can be in turn used as collateral at lending and derivatives protocols. All this is similar to how liquid staking protocols like Lido issue tokens such as stETH, which represent ether staked on their platforms at a 1:1 ratio, and can be used for yield farming.
The interest in yield from tokenized U.S. government debt comes as lending rates for major DeFi platforms struggle after 2022’s chaotic crypto market, and the Fed continues to raise interest rates.
According to DeFi Prime, the average rate for USDC lending is 1.68%, while a number of smaller TradFi neobanks will pay up to 4% for deposits with CapitalOne paying 3.4% and Discover at 3.3%.
And those TradFi banks have FDIC insurance.
This material is taken from the website coindesk.com.
Useful material?
Telegram 
Twitter Market
Analysts note that from 2024 to 2030, tokens worth $155 billion will be unlocked
May 17, 2024
Technologies
The new mechanism has already made it possible to calculate over tens of millions of fraudulent addresses
May 16, 2024
Incidents
The amount of damage amounted to $25 million in cryptocurrencies
May 16, 2024
Market
FTX customers will be compensated in cash, unlike Mt. Gox and Gemini customers who will receive cryptocurrencies
May 16, 2024
Technologies
It is available to crypto wallet users worldwide as an additional feature
May 15, 2024
Market
The ex-official known for his initiatives to explore the potential of blockchain in the financial system has joined the board of directors of a fintech company
May 14, 2024
Cryptocurrency rates
-
Bitcoin
$66 958
BTC
+2.16%
-
Ethereum
$3 106.41
ETH
+5.29%
-
BNB Smart Chain
$581.18
BSC
+1.76%
-
Ripple
$0.52418
XRP
+1.41%
-
Dogecoin
$0.156338
DOGE
+4.21%
-
Cardano
$0.484081
ADA
+4.95%
-
Polkadot
$7.19
DOT
+1.33%
-
Bitcoin Cash
$485.33
BCH
+8.96%
-
Litecoin
$84.09
LTC
+2.54%
-
Stellar XLM
$0.108613
XLM
+2.02%