- FinChain and Plume launched FLEX & FINO, a leveraged RWA yield strategy targeting up to 7.2% APY using FUSD as collateral and borrowed USDC for DeFi liquidity pools.
- The strategy includes a 90% utilization cap, T+2 redemptions and T+14 to T+30 interest settlements.
FinChain, a crypto-finance platform incubated by Fosun Wealth Holdings, has partnered with institutional open finance platform Plume to launch FLEX & FINO, a leveraged yield strategy targeting annualized returns of up to 7.2% on its FUSD real-world asset (RWA) token.
Announced on November 4, the product combines income from tokenized traditional financial assets with additional returns generated through decentralized finance (DeFi) liquidity pools. The projected 7.2% APY is based on baseline assumptions and is not a guaranteed return.
FUSD, or FinChain Dollar, is backed by tokenized short-term U.S. Treasury securities and compliant money market funds. FinChain says its reserves are held by designated custodians and maintained at a minimum collateralization ratio of 100%.
How the FLEX & FINO strategy works
Under the arrangement, users deposit FUSD as collateral and continue earning its underlying yield. They can then borrow USDC against their holdings and deploy the borrowed stablecoins into on-chain liquidity pools to generate additional income.
The strategy uses a leveraged looping model, allowing users to combine Treasury-linked returns with potential DeFi yields. However, borrowing costs and liquidity pool performance will influence the actual returns.
FinChain has set a 90% utilization cap as part of its risk management measures. Redemptions follow a T+2 settlement cycle, while interest settlements take place between T+14 and T+30.
The companies did not disclose the initial total value locked (TVL) or provide a detailed breakdown of the borrowing rates and liquidity pools used to calculate the projected yield.
FLEX & FINO marks the first product launched under the strategic partnership between FinChain and Plume. The companies said their work included technical integration, strategy modelling and risk controls.
Separately, FinChain has completed an integration with cryptocurrency exchange KuCoin, allowing FUSD to participate in its RCMS staking mirror solution.
