Ondo US Dollar Yield (USDY)

If you have been farming Takara Lend on Sei you can farm 3x more diamonds with same capital

How ?

They just integrated USDY by Ondon, Yield bearing stablecoin and it gives 3x more diamonds.

APY is low but you get more rewards so I think its worth it if you believe in Takara token/airdrop will be good.

I have been mainly focusing on the stablecoin market, and one of the controversial points of the CLARITY Act’s failure to pass is Brian Armstrong’s view that “stablecoins cannot earn interest” is essentially unfair. The backing assets are interest‑bearing short‑term U.S. Treasury bonds, yet the interest can only stay with the issuer or intermediaries and cannot be directly returned to users, which inevitably reduces the appeal to users.

Especially in a high‑interest‑rate environment, users are left with a 0% dollar substitute, while neighboring money market funds, T‑bills, and even many Web2 cash‑management solutions can offer 4%‑5%. This is not a product experience issue, but rather forcing users to pay the opportunity cost for compliance. This is the most real pain point of current compliant stablecoins: if they aim to be a payment tool or cash substitute, regulators tend to manage them with cash logic and do not want stablecoins to evolve into deposit substitutes or money‑market‑fund substitutes, because allowing stablecoins to openly earn interest would essentially pull the core liability side (deposits) out of the banking system.

Why do on‑chain stablecoins not seem to have this problem? Because many on‑chain “stablecoins” do not adopt a “cash” positioning; they are positioned as “yield‑generating USD assets.” For example, the USDY stablecoin issued by Ondo Finance is a typical case. Its yield logic is based on the interest generated from Ondo’s holdings of short‑duration U.S. Treasury bonds, allowing holders to obtain near‑Treasury base returns on‑chain.

So today the split in the stablecoin market is becoming increasingly clear:

1. Compliance‑oriented payment stablecoins, emphasizing non‑interest, focusing on settlement and compliance boundaries, with the goal of becoming a USD settlement layer.

2. Yield‑generating stablecoins, positioning themselves directly as USD asset management tools, making Treasury yields explicit.

In essence there is no right or wrong, only aligning with user needs from compliance and application perspectives.