Lotus partners with WisdomTree to build the DeFi lending yield floor

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CryptoWorld News reports that, according to The Defiant, the DeFi lending protocol Lotus announced a partnership with WisdomTree’s Treasury Money Market Digital Fund (WTGXX), integrating it as part of the reserve framework supporting LotusUSD. This move marks the first time a money market fund has been referenced in a DeFi lending protocol. LotusUSD’s reserves consist of USDC and tokenized short-term U.S. Treasury bonds. The integration with WTGXX is designed to allow borrowers to earn benchmark returns even at zero utilization, avoiding the issue of yield drying up when borrowing demand is low in standard DeFi lending. WTGXX currently tokenizes more than $857 million in U.S. Treasury bonds, with a 7-day annualized yield of 3.49%. The integration is enabled by a Securities and Exchange Commission exemption granted to WisdomTree, allowing WTGXX shares to settle instantly 24/7. Lotus plans to open a pre-custody vault in May 2026, followed by full availability.

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