Securitize and Gauntlet have launched a leveraged-yield strategy for Apollo's tokenized credit fund on Polygon. This strategy, which utilizes a DeFi-native technique called looping to enhance yield, demonstrates the increasing use of tokenized assets in crypto-native applications.
The offering, named Levered RWA Strategy, is expanding to the Ethereum mainnet and other blockchains after a pilot phase. The strategy is centered on the Apollo Diversified Credit Securitize Fund (ACRED), a tokenized feeder fund launched in January 2025. It invests in Apollo's $1 billion Diversified Credit Fund.
How it Works
The strategy employs a DeFi-native yield-optimization technique called "looping." ACRED tokens deposited into a vault are used as collateral to borrow USDC, which is then used to purchase more ACRED. Gauntlet's risk engine actively manages risk by monitoring leverage ratios and unwinding positions in volatile conditions.
The vault utilizes Securitize's sToken tool, allowing accredited token holders to maintain compliance within decentralized networks. ACRED investors first mint sACRED, which they can use for broader DeFi strategies without breaking regulatory rules. All trades are automated using smart contracts, reducing the need for manual oversight.