Gate News message, April 23 — Pre-launch DeFi lending protocol Lotus has integrated WisdomTree’s Treasury Money Market Digital Fund (WTGXX) as part of the reserve framework backing LotusUSD, its core vault token. This marks one of the first instances of a money market fund being referenced within a DeFi lending protocol.
WTGXX currently tokenizes over $857 million in U.S. Treasuries across Ethereum and Arbitrum, with a 7-day APY of 3.49%. The integration is designed to provide lenders with baseline yield even at zero utilization, addressing a structural problem in standard DeFi lending where returns decline when borrowing demand is low. LotusUSD reserves are composed of USDC and tokenized short-duration U.S. Treasuries.
The integration was enabled by WisdomTree’s recently granted SEC exemptive relief, which permits 24/7 instant settlement of WTGXX shares—a critical requirement for compatibility with around-the-clock DeFi infrastructure. “We are seeing growing interest in connecting regulated financial assets, such as WTGXX, with blockchain-based infrastructure,” said Maredith Hannon, head of business development for digital assets at WisdomTree.
The announcement follows the Kelp bridge exploit, which resulted in an attacker minting unbacked rsETH and using it as collateral on Aave to borrow nearly $200 million, leaving Aave facing between $124 million and $230 million in bad debt. Lotus founder and CEO David Reising directly linked the protocol’s design to this event, stating that DeFi lending yields are overly reliant on risky, volatile collateral. Lotus addresses this by implementing a tranched market structure, allowing lenders to select explicit risk profiles within a single connected liquidity pool.
Lotus pre-deposit vaults are scheduled to open in May 2026, with general availability to follow. Early access requests are open on the protocol’s launch page.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
MetaMask Co-founder Dan Finlay Departs Consensys After 10 Years, Cites Burnout
Gate News message, April 23 — Dan Finlay, co-founder and longtime developer of MetaMask, announced Wednesday that he is departing Consensys, citing burnout after a decade building the crypto wallet. Finlay said he plans to spend time with his family and wished the team well on their future path.
Me
GateNews25m ago
Aurise Foundation Launches XAUE Gold Yield Token with $76M Initial Reserve
Gate News message, April 23 — Aurise Foundation announced the launch of XAUE, an Ethereum-based gold yield token positioned as a vault layer for Tether Gold (XAUT). Ecosystem partners Aurelion and Antalpha jointly contributed 16,052 XAU, worth approximately $76 million, as the initial reserve.
XAUE
GateNews45m ago
AVAX One Reports Q1 2026 Results: Holds 14M AVAX, Revenue Doubles to $2.4M
Gate News message, April 23 — AVAX One, a Nasdaq-listed cryptocurrency treasury company, released preliminary Q1 2026 results, with quarterly revenue doubling sequentially to approximately $2.4 million, driven by Avalanche staking rewards and Bitcoin mining operations growth.
The company holds appr
GateNews46m ago
Delphi AI Prediction Market Launches on Gensyn Mainnet
Gate News message, April 23 — AI prediction market protocol Delphi has officially launched on Gensyn, an AI computing protocol, enabling humans and AI agents to conduct prediction trades on the same platform. Settlement is completed on-chain through verified AI oracles.
Gensyn previously launched D
GateNews1h ago
Andre Cronje's DeFi Platform Flying Tulip Launches Withdrawal Circuit Breaker
Gate News message, April 23 — Andre Cronje's decentralized finance platform Flying Tulip has launched a withdrawal circuit breaker mechanism designed to delay or queue withdrawals during abnormal capital outflows, limiting potential losses and providing time for investigation.
The mechanism
GateNews2h ago
Pyth Network to Retire Pythnet Application Chain Later in 2026, Ends OIS Rewards
Gate News message, April 23 — Pyth Network announced that Pythnet application chain will be retired later in 2026 following the passage of proposal OP-PIP-100, while proposal OP-PIP-103 has set the Oracle Integrity Staking (OIS) reward distribution rate to zero, marking the end of the OIS rewards me
GateNews2h ago
