Solayer Introduces 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 that is backed by real-world assets (RWA). The goal is to provide a decentralized and user-owned alternative to existing stablecoins.
Unlike traditional stablecoins, which are tied to fiat currencies held by central authorities, sUSD is supported by a diversified portfolio of low-risk assets, including Treasury bills and government bonds issued by the US Department of the Treasury.
According to the Solayer team, anyone can now access tokenized real-world assets starting with the US Treasury Bill, with a minimum investment of just $5. This collaboration with OpenEden, a tokenization platform, ensures that the US Treasury product has received an “A” rating from Moody’s. Solayer plans to onboard other low-risk real-world instruments in the future, such as oil and gold.
The approach taken by Solayer is decentralized, allowing users to mint and redeem sUSD directly without relying on centralized institutions. The non-custodial request-for-quote (RFQ) marketplace provided by Solayer enables this process. Users have the opportunity to earn a share of the yield generated by the underlying RWAs, which is automatically distributed in USDC, similar to earning interest in a traditional savings account.
To address liquidity concerns associated with RWA holdings on-chain, sUSD offers instant redemption back to USDC. Additionally, sUSD can be used as collateral for proof-of-stake (PoS) consensus mechanisms, providing an added layer of security to decentralized networks like Solana and Ethereum.
Solayer Core, the creators of sUSD, believe in a future where cryptocurrency and traditional finance seamlessly integrate. They argue that most stablecoins are overly reliant on traditional banking infrastructure, deviating from the core promise of individual freedom in crypto. They advocate for decentralized and user-owned stablecoins that cannot be created, destroyed, or frozen by anyone other than the user themselves. The Solayer RFQ protocol operates similarly to an automated market maker (AMM), allowing anyone to create quotes, and qualified tokenizers can become RWA liquidity providers.
Stablecoins have gained significant attention due to their global adoption and various use cases. According to Artemis, the demand for stablecoins continues to surge, with daily transaction volumes surpassing $66.77 billion in the past 24 hours, which is a 73% increase. Over the past month, the total transaction volume for stablecoins has exceeded $2 trillion, nearly doubling from the previous month. Tether (USDT) and USD Coin (USDC) remain the dominant players in the market, with transaction volumes of $112.4 billion and $33.5 billion, respectively, in the last 30 days.
