Dubai, VAE tokenization company Securitize and Decentralized Finance (Defi) specialist Gauntlet are planning to bring a tokenized version of Apollo’s Credit Fund to Defi, a remarkable step in embedding Real-World Activa in the Crypto Ecosystem.
The two companies will reveal a strategy for Leveraged-Yield strategy on Wednesday that is aimed at the Apollo Diversified Credit Securitize Fund (ACRED), a tokenized Feederfonds that debuted and invests in Apollo’s $ 1 billion diversified credit fund in January. The strategy runs on Compound Blue, a credit protocol powered by Morpho,
The range, called delivery RWA strategy, will first be available on Polygon (Pol). It is expected that it will expand to the Ethereum Mairnet and other block chains after a pilot phase.
“The idea behind the product is that we want our effects Plug and Play to be competitive with Stablecoin strategies that are great,” said Reid Simon, head of Defi and Credit Solutions at Securitize, in an interview with Coindesk.
Defi strategy built on tokenized assets
The introduction comes as tokenized Rwas – funds, bonds, credit products – get grip under traditional financial giants. Blackrock, HSBC and Franklin Templeton are among the companies that explore and settlement of assets based on blockchain. According to data from RWA.XYZ, tokenized American treasure chests alone have already raised more than $ 6 billion.
While institutions are experimenting with tokenization, the next challenge makes this assets usable in Defi applications. This includes making their use as collateral for loans, margin -trade or investment strategies for building not possible on legacy rails.
The strategy uses a Defi-Native Proceeds of Optimization Technology called “Looping”, in which ACRED tokens deposited in a safe are used as collateral to borrow USDC, which is then used to buy more accrede. The process repeats itself recursively to improve the yield, whereby exposure is dynamically adjusted on the basis of real -time loans and credit rates.
All transactions are automated using smart contracts, reducing the need for manual supervision. Risk is actively managed by Gauntlet’s risk motor, which monitors the lever ratios and can relax positions in volatile market conditions to protect users.
“This is expected to deliver the Defi of institutional quality that our industry has promised for years,” said Morpho CEO and co-founder Paul Frambot. “This use case shows in a unique way how Defi investors in funds such as ACRED gives access to access financial composability that is simply not possible on traditional rails.”
The safe is also one of the first applications of the new firitize firing tool, with which accredited token holders can maintain compliance and investor protection within decentralized networks. In this case, ACRED investors are first holy that they can use for wider Defi strategies without violating the regulatory rules.
“This is a strong example of the Defi of institutional quality that we have worked to build: making tokenized effects not only accessible, but also attractive for crypto-native investors looking for strategies that objectively exceed their traditional counterparts,” said CEO CEO CEO CEO CEO CEO in a statement.
