Solana’s re-staking protocol Solayer has recently partnered with the RWA tokenized national debt project OpenEden to jointly launch the first yield-generating stablecoin sUSD, which is backed by tokenized U.S. Treasuries, on the Solana blockchain. Participation starts at five dollars.
Solayer and OpenEden launch sUSD
Solayer and OpenEden have launched the yield-generating stablecoin sUSD on the Solana blockchain. Notably, sUSD is the first yield-generating stablecoin issued by Solayer that is supported by tokenized U.S. Treasuries, allowing users to deposit USDC to participate in the issuance of sUSD. Currently, sUSD has an issuance cap of $20 million, and users who make an initial deposit of $10,000 can receive a 10x yield bonus. OpenEden also provides additional rewards and yields to encourage users to participate early in the issuance of sUSD.
Providing low entry barriers for participation in the RWA market, with instant minting and redemption of sUSD
Solayer states that for ordinary investors, it is difficult to directly invest in U.S. Treasuries with a “small amount” of capital, and even after purchasing on exchanges, convenient redemption options are lacking. The purpose of issuing sUSD is to allow any investor interested in asset tokenization to participate in the market with a small amount (5 dollars), breaking the past barrier of requiring substantial capital. Furthermore, users can “instantly mint and redeem sUSD on the platform, and the yields will be directly paid to users holding sUSD in USDC.”
Acquiring sUSD through the RFQ mechanism, automatically matching qualified tokenized institutions
sUSD operates using Solayer’s Request for Quote (RFQ) protocol, serving as a decentralized trading market matching engine. This means that users do not need to rely on multiple platforms or providers to access U.S. Treasury yields. With a single interface, users can access multiple RWA providers. Solayer states that using multiple RWA providers disperses risk and effectively leverages various providers’ strengths to maximize yields. In this market, users can submit quotes in USDC, and the system will automatically match them with qualified tokenized institutions based on user quotes. These tokenized institutions will be responsible for putting U.S. Treasuries (RWA) on-chain, thereby generating sUSD. sUSD is also referred to by Solayer as Liquidity Real-Asset Tokens (LRT), providing users with the best rates and yields. All transactions are executed automatically by smart contracts, eliminating the need for third-party fund custodians, ensuring transaction transparency and security, similar to Automated Market Makers (AMM), allowing anyone to provide liquidity.
Stable annual yield of 4.33%, akin to bank deposit interest
Solayer indicates that as long as users hold sUSD, they will enjoy an annual yield of 4.33% without the need for additional minting or staking processes. Furthermore, sUSD utilizes the SPL Token 2022 extension functionality to support interest calculation that grows over time, similar to a bank interest calculator, ensuring that sUSD can sustainably maintain a 1:1 value with the U.S. dollar and has an automatic adjustment feature.
Collaborating with OpenEden to provide additional rewards
As a partner in the issuance of sUSD, OpenEden is not only the first RWA tokenized national debt project to receive an international credit rating from Moody’s, but has also deployed over $150 million in institutional funds on Ethereum as support. In this collaboration, OpenEden will also provide additional reward measures for users holding sUSD to enhance market participation.
(Binance Research: Overview of RWA Development Landscape, Understanding the Technological Risks and Limitations of Asset Tokenization)