Quick Take
- BlackRock’s nearly $3 billion tokenized Treasury fund has launched its “first direct DeFi protocol integration” with Euler on Avalanche, according to an announcement on Thursday.
- The launch builds on the sToken framework developed by Securitize, which enables tokenized products like BUIDL to expand further on-chain.
BlackRock’s BUIDL has its “first direct DeFi protocol integration” following an implementation on Euler on Avalanche, according to an announcement on Thursday. The launch builds on the sToken framework developed by Securitize, which enables tokenized products like BUIDL to expand further on-chain.
BUIDL is the world’s largest tokenized treasury fund, representing nearly $3 billion worth of short-term Treasuries and repo agreements. sBUIDL, a composable ERC-20 token, is fully redeemable for BlackRock’s BUIDL.
Thursday’s integration, developed by Re7 Labs, will enable the use of sBUIDL as collateral on Euler. Users will also be able to earn AVAX rewards when borrowing USDC or AUSD against sBUIDL, as well as the underlying yield generated by the BUIDL fund.
“It turns BUIDL into a composable ERC-20, enabling on-chain utility without compromising redeemability,” Euler wrote in an announcement.
Euler Finance is a decentralized, non-custodial EVM-based lending protocol. In 2023, it suffered a $197 million flash loan attack due to a vulnerability in its “donateToReserves” function that lacked liquidity checks, enabling the attacker to manipulate collateral and debt tokens.
The protocol relaunched in September 2024 with a modular, developer-focused v2 protocol and has garnered over $387 million in deposits by March 2025.
Source: theblock
