Oku And Morpho Go Nuclear On DeFi With Uranium.io’s Collateralized Loans

Tokenized uranium can now be used as collateral to safe loans in decentralized finance, due to a novel collaboration between Uranium.io, the DeFi aggregator Oku and the blockchain-based lending community Morpho. 

Oku introduced that it has created a brand new DeFi vault that leverages Morpho’s infrastructure, enabling xU308 token holders to deposit their property as collateral to acquire USDC loans. It means customers can spend money on tokenized uranium after which leverage that asset to discover the rising DeFi ecosystem on Etherlink, the EVM-compatible Layer-2 scaling community of the Tezos ecosystem. 

Uranium.io is an interesting showcase for the potential of tokenization. It launched its decentralized uranium marketplace on Etherlink in December 2024, making it doable for anybody to spend money on tokenized U308, which is the most typical gas used to offer nuclear power. Previously, the uranium market was off-limits to all however the wealthiest buyers. Due to the delicate nature of “yellowcake”, as U308 is understood colloquially, its commerce is very restricted by governments. Only accepted buyers should purchase it by way of a small variety of unique over-the-counter buying and selling desks, and provided that they’ve some critical capital, with the minimal lot measurement of fifty,000 lbs valued at greater than $4 million. 

Tokenization adjustments that. With Uranium.io, it’s doable to buy small quantities of uranium that’s represented by xU308 tokens. Investors don’t take possession of the bodily uranium, however they do personal the cash, which may be traded freely on a decentralized market.  Each xU308 token is backed by bodily deposits of yellowcake which can be saved on the safe services of Cameco, a Canadian mining firm that’s one of many largest gamers within the uranium trade. 

DeFi Goes Nuclear

Being capable of spend money on uranium is one factor, however with in the present day’s announcement, these buyers now have a solution to leverage their tokenized yellowcake holdings and generate DeFi yield whereas nonetheless holding onto it. It’s a strong factor for anybody who believes in the way forward for the nuclear power market, because it means they’ll capitalize on each the rising worth of uranium, and no matter DeFi protocols they care to discover. 

Uranium.io Product Lead Ben Elvidge stated the mixing with Morpho reveals that the tokenized uranium market is maturing quick. “We’re bringing DeFi lending capabilities to a commodity that has traditionally been trapped in opaque OTC markets with restricted liquidity choices,” he stated. 

When buyers deposit their xU308 tokens within the Morpho vault, they’ll have the ability to borrow a major quantity of its worth within the form of USDC, after which use these stablecoins to spend money on the DeFi protocol of their selection, all whereas retaining possession of their uranium. So they’ll have the ability to generate yield, whereas concurrently benefiting if U308’s worth appreciates. 

There are good causes to imagine in U308’s potential. Uranium.io factors to current analysis that revealed 97% of institutional buyers would think about including Yellowcake to their portfolios if it have been easier to entry. Moreover, it’s stated there’s a major shortfall within the uranium trade, with annual demand of 197 million lbs outpacing world manufacturing capability, which averages simply 155 million lbs. 

If buyers resolve to faucet into the liquidity of their U308 property, they’ll have loads of choices,  due to the fast progress of Etherlink’s DeFi ecosystem. In current months, the L2 community has introduced integrations with quite a few high DeFi protocols, together with Rarible, Superlend, Jumper.Exchange, Curve Finance and plenty of others. 

Dan Zajac, BD Lead at Oku, a DEX aggregator that provides superior buying and selling options and low swap and bridge charges throughout a number of EVM-compatible chains, stated the vault will assist to facilitate simpler tokenized uranium investments and liquidity administration for customers. “For Oku, it underscores our continued enlargement into real-world property, shifting DeFi past purely digital collateral,” he stated.

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