Polygon DeFi Expands as Billon Introduces Leveraged RWA Vaults

• Billon launched on Polygon, powering Asia’s first leveraged vault for tokenized RWAs with isolated lending pools.
• Credio is Billon’s independent risk advisor, setting leverage, collateral, and liquidation rules.

Billon has now launched an on-chain lending protocol built for tokenized assets on Polygon, adding fresh infrastructure to the network’s DeFi aimed at real-world assets (RWAs). AlloyX Group (NASDAQ: AXG) and Polygon Labs said they are supporting Billon Finance, which is developed and incubated by the Axion Foundation.

The protocol is purpose-built for tokenized asset lending, rather than a general DeFi money market. Billon uses isolated lending pools and published risk parameters to connect yield-bearing tokenized assets to on-chain credit markets. The design includes instant on-chain settlement and a framework that sets leverage and liquidation logic around the features of the underlying real-world collateral.

To mark the launch, Billon is powering Asia’s first leveraged vault for tokenized assets, deployed on the network. The vault offers leveraged exposure to tokenized asset-backed yield within rules set at the protocol level and a USDn2 vault that will scale liquidity as permitted by solvency constraints.

Polygon-based Risk Governance and Vault Controls

Credio has been appointed as the independent risk advisor for Billon’s lending protocol. Credio operates as the risk curation arm of Untangled Finance, which is backed by Fasanara. In this setup, Credio will ensure the establishment and supervision of the key controls such as leverage ratios, collateral levels, liquidation procedures, and continuous risk management of the vault structure.

Billon will be based on Polygon’s transaction costs, throughput, and current DeFi ecosystem to facilitate institutional involvement.

Moreover, the launch centers on institutional-grade DeFi features such as defined collateral rules, transparent pool segregation, and parameter-driven liquidations. Therefore, the vault is a route for tokenized asset holders to access stablecoin liquidity while maintaining exposure to cash-flow assets.

CEO of Polygon Labs, Marc Boiron, added:

Billon’s model allows tokenized assets to be used as collateral and routed into curator-managed leveraged strategies. 

Recently, CNF reported that the layer-2 network activated Ethereum’s ERC-8004 trustless agent standard on the network to make agent identity and reputation portable across layer-2 environments.

At the time of reporting, POL was trading at $0.1057, down 3.9% over the past 24 hours. The token’s 24-hour range was $0.1047 to $0.1105, with 24-hour trading volume at $86 million.