Solayer Labs Launches US Treasury Bill-Backed sUSD Stablecoin on Solana

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As a seasoned crypto investor with over a decade of experience under my belt, I must say that Solayer Labs’ latest move to introduce $sUSD, a yield-bearing stablecoin, is a game-changer in the DeFi landscape on Solana. Having closely followed the growth and evolution of this protocol since its inception, I can confidently assert that it has been consistently pushing boundaries in democratizing access to traditional financial assets within the realm of crypto.

The foremost restaking platform on the Solana network, Solayer Labs, recently added another native asset to its collection. After reaching a total value locked of $200 million last month, this protocol launched $sUSD – a stablecoin that generates yields.

Working alongside OpenEden, a platform for tokenized Treasury Bill issuance, users can generate returns by depositing $USDC, which is then converted into $sUSD. This deposit of capital serves to secure various systems that are part of the Solana network.

Solayer Launches Yield-Bearing Stablecoin on Solana

Solayer Labs has officially revealed the $sUSD protocol, a yield-bearing, real-world asset-backed synthetic stablecoin on Solana. Co-designed with OpenEden, this unique token allows users to unlock yields from US Treasury Bills as low as $5 in $USDC.

1/ today, we unveil the Solayer USD (#sUSD) protocol

the first RWA-backed synthetic stablecoin

For just $5, individuals can gain entry to tokenized real-world assets, with the U.S. Treasury Bill being the first available, and it’s currently operational on Solana.

in partnership with @OpenEden_Labs

>

— Solayer (@solayer_labs) October 29, 2024

It moves toward democratizing access to stable, low-risk financial assets in crypto. The $sUSD is pegged 1:1 to the USDC, and it also has unique self-rebasing mechanism for the interest taken in.  The mechanism reflects the interest earned on the current balance at $1 and the growing token balances in time.

The digital currency, denoted as $sUSD, follows Solana’s Token-2022 standard with a special feature for tokens that earn interest. This sets it apart from traditional stablecoins because it doesn’t require staking. Instead, the balance grows automatically, allowing users to directly observe their returns in their account balance. Currently, the estimated annual return is around 4.33%, calculated using U.S. Treasury yields as a reference.

sUSD Designed for Security, Accessibility, and DeFi Innovation

The $sUSD can also be used to secure many of the systems integrated with Solana as a part of Solayer Labs DeFi ecosystem. Some of them include bridges and oracles that support both on-chain and off-chain use through its restocking protocol. The latter is optimized for high speeds and low costs on Solana.

The launch encompasses diverse incentive schemes. Some of these offer a 10-fold increase in yield for the initial $10,000 deposits during the first minting phase scheduled for October 30th. With its unique structure and real-world asset backing, sUSD aims to embody the “cypherpunk meets Wall Street” philosophy, providing a practical, intuitive, and risk-controlled DeFi product on Solana, offering a blend of innovation and financial security.

Following the specified guidelines, the sUSD protocol functions as a decentralized marketplace for Request-For-Quote (RFQ). Essentially, only the owners have the authority to generate or eliminate sUSD. Deposits of USDC are transformed into quotes, which, through a matching engine, get distributed among various qualified RWA tokenizers. As a result, users receive their sUSD back.

As a researcher, I am eager to share that this endeavor aligns perfectly with my organization’s mission: bridging the chasm between conventional finance and blockchain technology. This project will also broaden our product offerings, focusing on more secure assets and increasing Decentralized Finance (DeFi) adoption within the Solana ecosystem. At present, Solana is experiencing a surge in popularity, with some industry experts predicting that the value of SOL could potentially skyrocket to $300.

Hitting $200M TVL Milestone

During the third quarter, Solayer Labs experienced robust growth, even setting a significant mark when it surpassed $200 million in Total Value Locked (TVL) at one instance. This surge in TVL can be attributed to Solana DeFi users who are drawn to the distinctive restacking features and high-yielding assets offered by the protocol, which have been consistently expanding each month.

An important aspect that helps bring users on board is the anticipation of a potential airdrop, which has gained momentum following the platform’s successful completion of a $12 million funding round, with Polychain Capital leading the investment, and additional support from Binance Labs and Big Brain Holdings.

After a 13% decrease, Solayer Labs’ value has settled around $180 million. This drop seems to align with Solana’s overall price fluctuations due to recent geopolitical issues rather than suggesting a large-scale exit by users. According to DeFiLlama data, the decline in TVL (Total Value Locked) in SOL is only 4.47%, demonstrating that user deposits on the platform remain relatively stable.

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2024-10-29 18:42