Crypto Market

Interest-paying cryptocurrency launched on Solana

  • The cryptocurrency is issued by Sollayer Labs, a restaking protocol on Solana.

  • The yield obtained is 4.33% in Treasury bills.

Solayer Labs, a re-staking protocol on the Solana network, has introduced the Solayer USD (sUSD) stablecoin on its platform, a crypto asset designed to generate interest for its holders.

“Cryptocurrencies are not just numbers, but a tool for equitable access to financial freedom, eliminating intermediaries,” he said in a statement. release Solayer.

Solayer highlights that sUSD, Being decentralized and owned by users, it offers an advantage by eliminating dependence on intermediaries.

This stablecoin is built on low-risk real-world assets such as US Treasury bills, which are tokenized in collaboration with OpenEden, a platform focused on tokenizing assets.

Solayer assures that the tokenization of Treasury bills is just the beginning, since intends to incorporate other real-world assets such as oil or gold in the future.

Real-world assets (RWA) such as property, government bonds, art, stocks and commodities can be tokenized, which allows its purchase and sale without intermediaries and facilitates access to investments in markets that would traditionally be restrictive.

How does sUSD work?

The sUSD stablecoin operates through the RFQ protocol, which stands for “Request For Quotation”, which allows users to request prices to buy or sell sUSD on the Solayer marketplace.

This diagram shows how Solayer’s RFQ protocol, in combination with liquidity providers, facilitates the creation and exchange of sUSD. Source: Solayer.

Through this system, users can deposit USDC on the platform and receive sUSD in exchangeobtaining a return of 4.33% per yearbased on the interest generated by Treasury bills.

Additionally, sUSD holders can mint and redeem this currency with a minimum of five dollars, automatically receiving interest in USDC.

The platform operates under a non-custodial smart contract that automates the quoting, minting and order matching procedures.

Solayer allows any user creates a quote and any qualified tokenizer acts as a liquidity provider of real-world assets, without the need for additional permissions, thus promoting an open and decentralized ecosystem.

What differentiates sUSD from other stablecoins?

While issuers of USDC and USDT, such as Circle and Tether, generate income from their investments in Treasury bills, These returns are directed towards the issuers and not the holders.

In the case of Tether, it has around $98 billion in Treasury bills, making it one of the largest holders of these instruments worldwide.

Tether CEO Paolo Ardoino said the company had a stronger relationship with the US government than any other stablecoin issuer. This, to the point of becoming your “best friend.”

On the other hand, Solayer assures that in the case of sUSDinterest is paid directly to holdersstarting with short-term Treasury bills, and maintaining a “chain savings account” operation in real time.

It is important to clarify that, although Treasury bills and Treasury bonds are debt instruments backed by the United States government, bills are short-term investments (generally less than 18 months) issued at a discount, while bonds have a longer maturity period, greater than 18 months, and usually pay periodic interest.

Asset tokenization and its rise in 2024

Asset tokenization has become relevant in 2024, with a 32% increase in the market capitalization of this industryaccording to a report of the Tokenized Asset Coalition.

This growth includes a notable expansion in Treasury bonds (179%), private credit (40%) and commodities (5%).

Market capitalization of tokenized Treasuries surpassed $2.43 billion on cryptocurrency networks, boosted by financial giants like BlackRock, according to data from the RWA.xyz platform.

CriptoNoticias reported that the “BlackRock USD Institutional Digital Liquidity Fund” (BUIDL) fund became the first tokenized Treasury bond fund to exceed $500 million in assets, a figure that currently amounts to $533 million.

A report of the Boston Consulting Group suggests that real-world assets could reach $16 billion by 2030showing the great economic potential of this trend.

In this way, Solayer’s sUSD stablecoin joins an industry with high future prospects and makes a difference in the industry by offering an opportunity for those looking for a decentralized savings account, with direct access to the stability of the dollar and the benefits of a digital economy.

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