Oku And Morpho Go Nuclear On DeFi With Uranium.io’s Collateralized Loans
In Brief
Tokenized uranium (xU308) can now be used as collateral to borrow USDC in DeFi, letting investors leverage physical uranium holdings for yield while retaining ownership.
Tokenized uranium can now be used as collateral to secure loans in decentralized finance, thanks to a novel collaboration between Uranium.io, the DeFi aggregator Oku and the blockchain-based lending network Morpho.
Oku announced that it has created a new DeFi vault that leverages Morpho’s infrastructure, enabling xU308 token holders to deposit their assets as collateral to obtain USDC loans. It means users can invest in tokenized uranium and then leverage that asset to explore the growing DeFi ecosystem on Etherlink, the EVM-compatible Layer-2 scaling network of the Tezos ecosystem.
Uranium.io is a fascinating showcase for the potential of tokenization. It launched its decentralized uranium marketplace on Etherlink in December 2024, making it possible for anyone to invest in tokenized U308, which is the most common fuel used to provide nuclear energy. Previously, the uranium market was off-limits to all but the wealthiest investors. Due to the sensitive nature of “yellowcake”, as U308 is known colloquially, its trade is highly restricted by governments. Only approved investors can purchase it via a small number of exclusive over-the-counter trading desks, and only if they have some serious capital, with the minimum lot size of 50,000 lbs valued at more than $4 million.
Tokenization changes that. With Uranium.io, it’s possible to purchase small amounts of uranium that’s represented by xU308 tokens. Investors don’t take possession of the physical uranium, but they do own the coins, which can be traded freely on a decentralized marketplace. Each xU308 token is backed by physical deposits of yellowcake that are stored at the secure facilities of Cameco, a Canadian mining company that’s one of the largest players in the uranium industry.
DeFi Goes Nuclear
Being able to invest in uranium is one thing, but with today’s announcement, those investors now have a way to leverage their tokenized yellowcake holdings and generate DeFi yield while still holding onto it. It’s a powerful thing for anyone who believes in the future of the nuclear energy market, as it means they’ll capitalize on both the rising value of uranium, and whatever DeFi protocols they care to explore.
Uranium.io Product Lead Ben Elvidge said the integration with Morpho shows that the tokenized uranium market is maturing fast. “We’re bringing DeFi lending capabilities to a commodity that has historically been trapped in opaque OTC markets with limited liquidity options,” he said.
When investors deposit their xU308 tokens in the Morpho vault, they’ll be able to borrow a significant amount of its value in the shape of USDC, and then use those stablecoins to invest in the DeFi protocol of their choice, all while retaining possession of their uranium. So they’ll be able to generate yield, while simultaneously benefiting if U308’s price appreciates.
There are good reasons to believe in U308’s potential. Uranium.io points to recent research that revealed 97% of institutional investors would consider adding Yellowcake to their portfolios if it were simpler to access. Moreover, it’s said there’s a significant shortfall in the uranium industry, with annual demand of 197 million lbs outpacing global production capacity, which averages just 155 million lbs.
If investors decide to tap into the liquidity of their U308 assets, they’ll have plenty of options, thanks to the rapid growth of Etherlink’s DeFi ecosystem. In recent months, the L2 network has announced integrations with numerous top DeFi protocols, including Rarible, Superlend, Jumper.Exchange, Curve Finance and many others.
Dan Zajac, BD Lead at Oku, a DEX aggregator that offers advanced trading features and low swap and bridge rates across multiple EVM-compatible chains, said the vault will help to facilitate easier tokenized uranium investments and liquidity management for users. “For Oku, it underscores our continued expansion into real-world assets, moving DeFi beyond purely digital collateral,” he said.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
