Curve and Elixir Partner for BlackRock’s BUIDL Fund 

Decentralized exchange Curve Finance and blockchain company Elixir have entered into a partnership to improve access to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) fund. 

Curve is a popular decentralized exchange for trading stablecoins and digital assets. Curve’s TVL is currently at $2.21 billion as per DefiLlama. 

BlackRock was one of the first mainstream companies to embrace the real-world asset (RWA) tokenization sector. The BUIDL fund was launched in March and enables tokenization of short-term US treasuries. 

Users can transfer BUIDL tokens for collateral on other DeFi protocols to earn extra yields. BUIDL was first launched on the Ethereum blockchain but was later expanded to include other networks such as Polygon, Aptos, Arbitrum, Optimism, and Avalanche. 

Implications of the New Curve Elixir Collaboration

• The new Curve partnership will allow users to mint Elixir’s stablecoin deUSD against BUIDL tokens as collateral. deUSD can be swapped for  USD Coin (USDC), Tether (USDT) and even Frax on Curve. 

• Users looking for yields can tap into Curve through this new collaboration and do more with their assets. Elixir is one of the largest liquidity providers using deUSD on Curve. 

• Users can earn rewards from liquidity pools in the form of swap fees and also stake tokens. Users can earn more than 5X and 10X rewards on Elixir’s apothecary. 

• Tokenized RWAs can now be utilized in popular DeFi protocols, thanks to this new interesting partnership. It provides DeFi access for RWA token holders such as BUIDL. 

  
  

Integration of RWA Tokenization Into DeFi

RWA token holders can tap into a new frontier of DeFi while retaining their original tokens and yield. BUIDL fund for example maintains a stable 1:1 dollar peg and provides passive yield in the form of new tokens. But now users will be able to earn an extra income through Curve and Elixir bridging. 

DeFi users will benefit from stable RWA assets representing more institutional money and an additional liquidity stream. In the future, more RWA assets could be onboarded for DeFi users looking for passive yield incomes. 

Learn more about RWA Tokenization in Real Estate

Conclusion: Unlocking DeFi’s Potential with RWA Tokenization

Tokenization of RWAs provides multiple advantages such as instantaneous transfers, daily dividends, enabling quick collateral transfers, fractional ownership, and access to multiple yields (such as the Curve Elixir deUSD partnership). 

Traditional finance investments require meeting high-net-worth, alongside navigating illiquid markets, regulatory market uncertainty, and high exit fees. The tokenization route has emerged as a new way to equalize investment access for all.