FinChain, the crypto-finance arm incubated by Fosun Wealth Holdings, has teamed up with blockchain infrastructure firm Plume to launch FLEX & FINO — a leveraged yield strategy that targets up to 7.2% APY on tokenized real-world assets (RWAs). What the product does - FLEX & FINO uses FUSD, FinChain’s interest-bearing stable token, as the entry point. FUSD is backed by short-term U.S. Treasuries and money market funds and — FinChain says — is maintained at a minimum 100% collateralization ratio in designated custodial reserves. - Users deposit FUSD as collateral, borrow USDC against that collateral, and deploy the borrowed stablecoins into DeFi liquidity pools. This layering lets investors capture both FUSD’s base yield and potential returns from the pools. - Because the strategy uses borrowed capital to boost exposure, its performance depends on both the yield of underlying assets and the cost of leverage. FinChain projects up to 7.2% annualized returns under baseline assumptions but has not guaranteed a fixed return. Risk controls and mechanics - FinChain has set a 90% utilization cap for the strategy to limit how much of the collateral can be leveraged. - Redemptions follow a T+2 settlement cycle; interest settlements occur on schedules between T+14 and T+30. - The company emphasizes that the strategy does not alter FUSD’s stated reserve backing — the new returns are generated on top of the existing collateralized structure — but notes the product introduces borrowing and liquidity risks beyond holding FUSD outright. Partnership context and product rollout - FLEX & FINO is the first joint product from the FinChain–Plume partnership. The teams worked together to adapt FUSD to blockchain use, build the yield model, and establish risk-management arrangements before launch. - FinChain CEO Zhao Chen framed the collaboration as an effort to apply traditional asset-management techniques to blockchain finance. Plume CEO Chris Yin stressed the importance of moving tokenized assets “from issuance to genuinely usable financial applications.” Ecosystem moves and integrations - Plume has been active this year building tokenized investment products — including nBND, a bond-focused tokenized vault — and partnerships with firms like Bybit and Ether.fi on institutional yield strategies. - FinChain also completed an integration with exchange KuCoin that enables FUSD to participate in KuCoin’s RCMS staking mirror solution, expanding the token’s availability for institutional collateral use. - TVL for FLEX & FINO will be visible through Plume’s Partner Protocol and Nest Protocol after launch; FinChain has not disclosed an initial TVL or committed capital amount. Bottom line FLEX & FINO is another example of RWA builders pushing tokenized Treasury and short‑term debt exposure into composable DeFi strategies. Investors attracted to the headline 7.2% projection should factor in leverage costs, liquidity pool performance, and the additional operational risks that come with borrowing and on‑chain liquidity provision. Read more AI-generated news on: https://app.chaingpt.org/news