Solayer Unveils sUSD, a User-Friendly Stablecoin Backed by Real-World Assets on Solana
Solayer, a staking platform built on the Solana blockchain, has recently launched sUSD, a synthetic stablecoin supported by real-world assets (RWA). The aim of this initiative, which was introduced on October 29, is to provide a decentralized and user-owned alternative to existing stablecoins.
Unlike traditional stablecoins that are pegged to a fiat currency controlled by a central authority, sUSD is backed by a diverse range of low-risk assets such as Treasury bills and government bonds issued by the United States Department of the Treasury. The Solayer team highlighted this in their recent X post, stating that “anyone with $5 can now access tokenized real-world assets, starting with the U.S. Treasury Bill, now live on Solana”.
The U.S. Treasury Bill is the first asset to be integrated into the platform through a partnership with OpenEden, a tokenization platform that offers a tokenized U.S. Treasury product with an “A” rating from Moody’s. In the future, Solayer plans to include other secure real-world instruments such as oil and gold.
Solayer’s sUSD takes a decentralized approach to RWA-backed stablecoins by utilizing a non-custodial request-for-quote (RFQ) marketplace. This allows users to mint and redeem sUSD directly without the need for centralized institutions. With a minimum entry point of $5, individuals can access sUSD and earn a portion of the yield generated by the underlying real-world assets. This yield is automatically distributed in USDC, similar to earning interest in a traditional savings account.
To address liquidity concerns associated with on-chain RWA holdings, sUSD offers instant redemption back to USDC. Additionally, according to Solayer’s blog post, sUSD can serve as collateral for proof-of-stake (PoS) consensus mechanisms, providing an extra layer of security to decentralized networks like Solana and Ethereum.
The creators of sUSD, Solayer Core, envision a future where cryptocurrency and traditional finance seamlessly integrate. They believe that most stablecoins are too reliant on traditional banking infrastructure, deviating from the core promise of individual freedom offered by cryptocurrencies. Solayer Core emphasizes the importance of decentralization and user ownership, envisioning stablecoins as automated assets that cannot be created, destroyed, or frozen by anyone other than the users themselves. Similar to an automated market maker (AMM), the Solayer RFQ protocol allows anyone to create quotes, and qualified tokenizers can become RWA liquidity providers.
Stablecoins have gained significant attention due to their increasing global adoption and wide range of use cases. According to Artemis, the demand for stablecoins continues to surge, with daily transaction volumes exceeding $66.77 billion in the past 24 hours, representing a 73% increase. In the past 30 days alone, the total transaction volume for stablecoins has surpassed $2 trillion, nearly doubling from the previous month. Tether (USDT) and USD Coin (USDC) remain the dominant players in the market, with $112.4 billion and $33.5 billion in transaction volume, respectively, over the last 30 days.
