Curve + Elixir + BlackRock: A $533M Bridge Between TradFi and DeFi
Curve Finance, the leading decentralized exchange for stablecoin trading, continues to strengthen its position as the primary liquidity hub for deUSD and other stablecoins. This role is set to expand as BlackRock's $533 million BUIDL fund, along with other institutional funds tokenized by Securitize, will soon access DeFi through Elixir's deUSD protocol.
This collaboration unlocks massive potential: up to $1B in institutional real-world assets (RWAs) can now mint deUSD, a yield-bearing synthetic dollar. Curve already hosts the majority of deUSD trading and liquidity, with $64M (approx. 60% of total liquidity) currently in Curve pools.
About Securitize and BlackRock's BUIDL
Securitize bridges traditional finance and blockchain by tokenizing real-world assets. As an SEC-registered platform, they've already brought over $1 billion in institutional assets on-chain, with BlackRock's $533M BUIDL fund being a flagship example.
The BUIDL fund (BlackRock USD Institutional Digital Liquidity) offers a tokenized version of traditional dollar-based investments:
- Invests in secure assets like U.S. Treasury bills and repurchase agreements
- Maintains a stable 1:1 dollar peg
- Automatically pays yields to holders' on-chain wallets monthly as new tokens
- Currently has $440M on Ethereum, with the remaining $93M spread across networks
About Elixir and deUSD
Elixir is a blockchain network specializing in orderbook exchange infrastructure and deUSD—a fully collateralized, yield-bearing synthetic dollar. deUSD is backed by a combination of stETH (used to create delta-neutral positions through ETH perpetual futures) and U.S. Treasuries via MakerDAO's USDS T-bill protocol. Since launch, deUSD has seen rapid adoption, with supply growing to over $160M in just 4 months.
Their new "RWA Institutional Program" lets institutional investors do more with their tokenized assets. For example, BUIDL token holders can now mint deUSD while keeping their original investment yields.
Note: Currently, only vetted participants can mint and burn deUSD, with plans to open access more broadly in the coming months.
deUSD on Curve
Elixir has chosen Curve as their primary liquidity hub, with $64M of their $110M total liquidity available across four key trading pools on Ethereum:
Liquidity Providers earn a combination of rewards:
- Trading fees from all swaps in these pools
- Elixir Potions rewards:
- 5x boost just for providing liquidity
- 10x boost when you stake your LP tokens in the Elixir Apothecary
Significance of the Partnership & Impact for Curve
This collaboration marks a significant step in merging traditional finance with DeFi:
- For RWA Investors: Access new DeFi opportunities while keeping your existing real-world asset yields – essentially getting the best of both worlds.
- For the DeFi Ecosystem: Welcome reliable institutional capital that makes markets more stable and liquid for everyone.
Curve benefits from this integration by:
- Solidifying Its Position: Strengthens Curve's role as the go-to platform for stablecoin liquidity, especially for high quality assets like deUSD.
- Attracting Institutional Participation: Opens the door for more traditional financial institutions to enter DeFi through Curve’s robust, proven platform.
- Increasing TVL & Swap Fees: When more RWAs mint deUSD, it creates a positive cycle: more trading volume → more liquidity → more revenue for Curve's liquidity providers and veCRV holders.
Curve's robust infrastructure is essential in making this institutional adoption possible. By providing deep liquidity and efficient trading for deUSD, Curve creates a vital bridge between traditional finance and DeFi. As more institutional assets like BUIDL enter the ecosystem, Curve's role as the primary venue for stablecoin liquidity continues to grow, benefiting both traditional and DeFi participants with enhanced trading opportunities and yields.
Get in touch with Curve on Discord or Telegram for help on creating or enhancing liquidity for your own pool or project!