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

The leading re-staking protocol on Solana, Solayer Labs, has revealed yet another native asset to its portfolio. Following its attainment of $200 million in total value locked last month, the protocol introduced $sUSD, a yield-bearing stablecoin.

In collaboration with OpenEden, a tokenized Treasury Bill issuer, $sUSD allows users to earn yield on $USDC deposits. The capital deposited helps secure different systems integrated into Solana.

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

anyone with $5 can access tokenized real world assets, starting with U.S. Treasury Bill, now live on @Solana

in partnership with @OpenEden_Labs

> https://t.co/Oeu66HNOQd pic.twitter.com/TzkpSBM1Dz

— 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.

$sUSD is based on Solana’s Token-2022 standard with an extension for interest-bearing tokens. This is different from a regular stablecoin in that there is no need for staking. That means the balance will increase automatically. Users, therefore, directly see the yield in their balance, presently estimated at an annualized 4.33% based on US Treasury yields.

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 includes various incentive programs. Some include offering a 10x yield boost on the first $10k deposits during the initial minting phase on October 30th. With its novelty in structure and real-world asset backing, $sUSD aspires to bring the “cypherpunk meets Wall Street” approach to provide a practical, user-friendly, and risk-mitigated DeFi product on Solana.

According to the protocol, sUSD protocol is a non-custodial Request-For-Quote (RFQ) marketplace. This means that only owners can create or destroy sUSD. USDC deposits are created into quotes, and through the matching engine, are sent across different qualified RWA tokenizers. Then, sUSD is minted back to the users.

This initiative aligns with Solayer’s mission to bridge the gap between traditional finance and blockchain. It also expands its product suite towards more stable assets and wider DeFi adoption on Solana. Solana is currently going through its bullish phase. Some experts even think SOL could reach $300.

Hitting $200M TVL Milestone

Solayer Labs also saw strong growth during Q3, setting a milestone when it reached over $200 million in TVL at one point. Increased TVL came for Solana DeFi users seeking exposure to the unique restacking opportunities and high-yielding assets available on the protocol, which are growing month over month.

A key contributing factor to onboarding users is the expectation of a possible airdrop, which has been hyped with the successful closure of the platform’s $12 million funding round led by Polychain Capital and further support from Binance Labs and Big Brain Holdings.

While Solayer Labs subsequently retreated to around $180 million, this 13% drop is more in line with Solana’s broader price movements due to recent geopolitical conflict and not indicative of any mass exodus on the part of users. According to DeFiLlama data, the fall of TVL denominated in $SOL is just 4.47%, reflecting the stability of users’ deposits on the platform.