What is Flux Finance (FLUX)?
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🟢 The simple version
Plain English — no jargon. Start here.
Flux Finance is a Compound v2 fork by Ondo Finance that allows OUSG (tokenised US Treasury Bills, KYC required) to be used as collateral to borrow stablecoins — creating a permissioned lending market for Real World Asset holders.
RWA lending with KYC
Institutional OUSG holders (Ondo's tokenised US T-Bills) can borrow USDC/DAI on Flux without selling their Treasury position. Borrowing against OUSG is KYC-gated (only verified OUSG holders). Supplying USDC/DAI to Flux is permissionless — anyone can lend stablecoins to earn interest from RWA-backed borrowers. FLUX is the governance token (separate from ONDO). Is FLUX legal in India? Yes. 30% tax, 1% TDS apply.
🟡 A bit more detail
For when you want to go a little deeper.
RWA leverage strategy
Use case: deposit $1M OUSG → borrow $700K USDC at 70% LTV → deploy USDC into DeFi for yield → net: yield on full $1M T-Bill exposure + DeFi yield on $700K, minus borrowing cost. This institutional leverage strategy is the primary demand driver for Flux.
🟣 The full technical picture
For the technically curious.
Key facts
- Token: FLUX (~1B, governance, separate from ONDO)
- OUSG: Ondo US T-Bills (KYC required)
- Lenders: Permissionless (USDC/DAI supply)
- Borrowers: KYC-verified OUSG holders