Read this article on bsc.news FinChain, a crypto finance brand incubated by Fosun Wealth Holdings, has launched a leveraged yield product with @plumenetwork, the blockchain behind $PLUME. The
FinChain, a crypto finance brand incubated by Fosun Wealth Holdings, has launched a leveraged yield product with @plumenetwork, the blockchain behind $PLUME. The strategy, called FLEX & FINO, is built around FinChain's interest-bearing token FUSD and is aimed at users seeking extra returns from tokenized Treasury exposure.
Users deposit FUSD as collateral and continue to earn its native yield, then borrow USDC against that position. The borrowed USDC can be placed in liquidity pools to generate additional returns, according to FinChain's announcement, issued on Nov. 4 via PR Newswire. The loop of collateral, borrowing and pool deployment is the core of the design.
FinChain expects annualized returns of up to 7.2% under baseline assumptions, with a 90% utilization cap, the announcement said. That cap limits how much of each pool can be borrowed, which restricts leverage risk. Redemption settles on a T+2 basis, while interest settlement runs between T+14 and T+30. Returns depend on borrowing costs and pool performance.
FUSD is backed by tokenized short-term U.S. Treasury bills and compliant money market funds, with a collateralization ratio of no less than 100%, according to FinChain. Reserves are held by designated custodians.
The launch is the first deliverable of the strategic partnership between FinChain and Plume, FinChain said. Under the partnership framework, total value locked (TVL) associated with FLEX & FINO will be displayed under Plume's Partner Protocol and Nest Protocol after launch. FinChain did not disclose an initial TVL figure.
FinChain has also made FUSD accessible to KuCoin's RCMS staking mirror solution, the announcement said. The release does not name the lending market supplying the USDC, the liquidity pools used, or loan-to-value and liquidation terms.
PR Newswire: FinChain Partners with Plume to Launch Yield Enhancement Strategy
