Ondo

Ondo USDY

Ondo USDY is a tokenized note on Ethereum representing claims on short-term US Treasuries and bank deposits, issued by a bankruptcy-remote Delaware SPV. Yield accrues from US Treasury interest, with daily verification by Ankura Trust and 103%+ overcollateralization.

AUM

$586.71m-0.33%

APY

3.55%

CCC+Rated Protocol

Updated Mar 13, 2026

Risk Rating

CCC+

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This rating is based solely on publicly available information. The range from CCC+ to BBB reflects the gap between the current assessment and the potential rating achievable if all identified improvement areas are addressed.

SCS: Smart Contract Security

KMP: Key Management Permissions

M: Market

L: Liquidity

C: Collateral

PM: Protocol Mechanics

ICE: Infra Counterparty Exposures

PCE: Protocol Counterparty Exposures

G: Governance

FR: Financial Resilience

TLC: Team Legal Compliance

DT: Documentation Transparency

Potential Score

Provider risk assessed across Business, Operations, Reliability, and Security.

View the detailed scoring breakdown

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Contract Addresses

VaultContract

0x96F6...985C

Oracle

0xa021...1de0

Blocklist

0xd8c8...B0a8

ProxyAdmin

0x3ed6...4c19

USDYManager

0x25A1...b97e

USDYImplementation

0xea0f...7528

Registry (Allowlist)

0x7cE9...dc70

GovernanceMultisig (Management)

0xaed4...8367

GovernanceMultisig (ProxyAdmin Owner)

0x1a69...3ad7

Key Strengths

Extensive audit coverage from multiple top-tier firms including Spearbit/Cantina and Code4rena, with no unresolved critical findings across 8+ independent audits
Bankruptcy-remote Delaware SPV with Ankura Trust as collateral agent holding first-priority security interest, providing structural investor protection
103%+ overcollateralization verified daily by Ankura Trust, backed by US Treasury bills and bank demand deposits
4-of-7 Gnosis Safe multisig for both proxy upgrades and management operations, verified on-chain
Active Immunefi bug bounty program with $250K maximum payout
SEC investigation closed without charges or enforcement action

Key Risks

No on-chain timelock for proxy upgrades, allowing the multisig to upgrade the USDY implementation instantly without advance notice or user exit window
Admin can burn tokens from any address and selectively block transfers via allowlist/blocklist enforcement, required for securities compliance but representing significant control over user funds
100% off-chain custody with Ondo as sole transfer agent for minting, redemption, and oracle price updates; recovery in insolvency depends on Ankura Trust legal process
Multisig signer identities undisclosed with significant overlap between governance multisigs, making independence unverifiable
Thin secondary market liquidity relative to TVL, with historical NAV deviation exceeding 6% during early thin-market conditions
No disclosed real-time monitoring system or incident response playbook for smart contract operations