Ondo Finance, a tokenized asset issuer, announced a technical partnership with oracle service provider Chainlink to integrate its three tokenized assets—SPYon (S&P 500), QQQon (Nasdaq 100), and TSLAon (Tesla)—onto the DeFi lending protocol Euler Finance. Users who purchase these three tokenized US stocks can collateralize and borrow stablecoins on-chain.
US stock tokens can be used for on-chain collateralized lending.
In the past, US stock tokens in the cryptocurrency market (such as early synthetic assets) mostly only had the function of "price exposure." Investors held tokens simply to track stock price fluctuations, resulting in relatively limited capital utilization efficiency. Through Euler Finance's Vault mechanism, Ondo is attempting to transform these equity assets into operable financial instruments.
This means that holders can theoretically pledge their tokens to obtain liquidity without selling them. This mechanism transforms tokenized stocks from static holdings into collateralized assets similar to ETH or WBTC, providing a new path for on-chain asset allocation.
What is Euler Labs, the on-chain lending protocol?
According to DeFiLlama's on-chain data , if the "Total Value Locked (TVL)" and "Borrowed Amount" within the Euler protocol are added together, the protocol's current total supply is approximately $1.3 billion. This indicates that after its v2 version upgrade, Euler has accumulated a certain level of market liquidity and user base. Its existing liquidation mechanism and risk control module will serve as the underlying infrastructure supporting the operation of US stock tokenized collateralized lending.
(Euler Finance experiences liquidity crisis, users reveal large sums of money are trapped )
QQQon's lending pool has only $16.99 in deposits.
The lending protocols are currently in the early stages of a cold start, with on-chain funds yet to be injected. According to the latest data from Euler Finance , the total deposits in the TSLAon pool are only $31.83, and QQQon is $16.99. SPYon, which is performing slightly better, has total deposits of $6,586.72, but compared to the $30.13 million deposit cap (Supply Cap) set by the protocol, its fund utilization rate is also close to zero.
Currently, the deposit limits for TSLAon and QQQon are set at US$45.04 million and US$31.58 million respectively. Although the agreement reserves a huge space for institutional entry, based on the existing data, market funds have not yet entered, and the function is still in the technical demonstration stage of "having a price but no market".
This article, "Ondo Partners with Chainlink to Open On-Chain Collateralized Lending for Tesla and S&P 500 US Stock Tokens," first appeared on ABMedia, a ABMedia .
