Dubai, UAE – Tokenization Firm Securitize and Decentralized Finance (DEFI) The specialist Gauntlet is planning to bring a tokenized version of Apollo’s credit fund to Defi, a well-known step in embedding real-world assets in the Crypto ecosystem.
The two companies open Wednesday a leveraged-harvest approach that offers centered on the Apollo Diversified Credit Securitize Fund (ACRED), a tokenized feeder fund that debuted in January and invested in Apollo’s $ 1 billion sari -the Apollo credit fund. The approach will run in compound blue, a lending protocol enabled by Morpho,
The offer, called the levered RWA strategy, is first available in polygon (POL). It is expected to expand to Ethereum Mainnet and other blockchains after a pilot phase.
“The idea behind the product is that we want our security to be plugged in and play competitive with stablecoin techniques that are huge,” Reid Simon, head of the DeFI and credit credit solutions, said in an interview with CoinDesk.
Defi approach developed in tokenized assets
The introduction arises as tokenized RWAs – funds, bonds, credit products – get traction with traditional financial giants. BlackrockHSBC, and Franklin Templeton are among the companies that explore blockchain-based issues and settlement. The tokenized US treasury only has tasted more than $ 6 billion, according to data from RWA.xyz.
While institutions are experimenting with tokenization, the next challenge makes these assets available in Defi applications. This includes enabling their use as collateral for loans, margin trading or developing investment techniques that are not possible on legacy metals.
The approach uses a defi-native Ano-optimization technique called “looping”, in which acred tokens deposited in a vault are used as collateral to borrow USDC, which is used to buy more acred. The process is repeated to enhance the yield, with exposure that is adjusted constantly based on real-time borrowing rates and lending.
All trading is automatically using smart contracts, reducing the demand for manufacturers. The risk is actively managed by the Gauntles Risk engine, which monitors leverage ratios and can relax positions in PABAGU -changing market conditions to protect users.
“It is expected that the institutional grade defi has been delivered by our industry for many years,” Morpho CEO and cofounder Paul Fropot said. “This case of use is uniquely showing how the DeFI allows investors in funds such as acred to access financial composability that is not possible in traditional metals.”
Vault is also one of the first uses of securitize’s new stoken tool, which allows token holders to maintain compliance and investor protection within decentralized networks. In this case, acred investors are first sacred mint that they can use for greater defi techniques without destroying regulatory policies.
“This is a powerful example of institutional Grade Defi that we are working to build: making tokenized security is not only accessible, but encouraging in investors native indigenous strategies that objectively outpace their traditional counterparts,” Securitize CEO Carlos Domingo said in a statement.
