USDY is a yield-bearing stablecoin backed by U.S. Treasury bonds and bank demand deposits. USDY, short for Ondo US Dollar Yield, is a stablecoin launched by Ondo Finance. Its main feature is that it not only anchors the value of the U.S. dollar but also provides holders with a certain interest yield. The underlying assets of USDY include a basket of short-term U.S. Treasury bonds and bank demand deposits, which ensure its stability and yield. By tokenizing these assets, USDY offers non-U.S. investors exposure to the dollar and competitive returns, while also providing high liquidity and accessibility. USDY operates on blockchain networks such as Arbitrum, utilizing smart contracts to automate lending protocol terms, reducing the need for intermediaries and lowering transaction costs. Its issuer, Ondo Finance, employs compliance measures and risk management strategies to ensure the stability and security of the token's value. Compared to traditional stablecoins (like USDT and USDC), the biggest feature of USDY is its "yield-bearing" nature, meaning holders can earn returns from the underlying assets. This makes USDY highly attractive in the decentralized finance (DeFi) space, especially for users looking to gain dollar stability while earning interest.