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Solana-Based Restaking Platform Solayer Launches Stablecoin Backed by U.S. Treasury Bill

Solayer’s new stablecoin is unavailable to users in the United States and other restricted countries.

Avatar image of Mishael Nwani Mishael Nwani•October 29, 2024

Solana-based staking protocol Solayer launched its decentralized stablecoin, dubbed Solayer USD (sUSD), on the Solana network on October 29th. The stablecoin issuer developed sUSD in collaboration with OpenEden Labs, a platform that bridges real-world assets (RWAs) and decentralized finance (DeFi).

Solayer Launches sUSD

Solayer uses the United States treasury bill to back sUSD’s value. Its blog post indicates that other “low-risk” real-world assets like oil and gold will be incorporated to support the Solana-based stablecoin.

The staking protocol describes its stablecoin as “a non-custodial Request-For-Quote (RFQ) marketplace.” It implies that Solayer puts the power in the hands of users, allowing them to mint and destroy sUSD. Users can own the token for as low as $5.

To own the decentralized stablecoin, participants deposit USDC into Solayer’s platform. The protocol’s smart contract automatically purchases U.S. treasury bills and allocates the equivalent value of sUSD to the user’s wallet.

Solayer seeks to democratize access to RWAs by offering sUSD holders an interest rate of 4.33% on the U.S. treasury bill paid in USDC, increasing the stablecoin’s utility. The interest is automatically added to the user’s balance.

This approach is different from the way prominent stablecoin issuers like Tether and Circle allocate yield from T-Bills and other reserve assets. These keep the gains instead of giving them to token holders.

Solayer noted that the new stablecoin will be unavailable to U.S. residents and other restricted areas.

Solayer Grows Ecosystem

The sUSD stablecoin will become one of Solayer’s flagship products. The project’s most prominent service is its restaking feature, which has become rampant in the crypto market. This function allows users to stake an already staked asset or use it within other protocols.

Solayer establishes its presence in the restaking market with the Solayer Staked SOL (SSOL). Other projects like EigenLayer have also explored the market. Crypto exchange Kraken recently introduced the feature to non-U.S. users.

Mishael Nwani

Mishael Nwani is an avid crypto enthusiast with nearly four years of experience in the industry. Since 2022, he has covered topics across cryptocurrencies, NFTs, artificial intelligence, and financial markets.