Stablecoins reached product market fit but left investors behind. @Tether_to and @circle, the two largest issuers generate roughly $8.5B and $2.9B in annual revenue. None of that value flows back to the people actually using their stablecoins. Users get no upside in the growth of the network and adoption of the protocol. You have no voice in governance. You simply hold dollars while the issuers capture all the yield from underlying US Treasuries. The stablecoin business is booming and @solomon_labs is disrupting the status quo. They’re building rails where you own your dollar, earn yield by default, and access all the upside of stablecoin PMF through a fully composable asset throughout Defi. Here’s how it works: @solomon_labs allow you earn yield simply by holding or using its native stablecoin $USDv This yield is generated from a delta-neutral basis trade, similar to strategies used by $ENA and traditional hedge funds where you buy spot BTC/ETH/SOL, etc., and hedge short on perps. Because perps often have positive funding, they collect funding payments from traders who are long. Funding fees collected from this strategy yield about 15% annualized for holders and are streamed directly into their wallets. Why this matters: Earlier experimentations with yield-bearing stablecoins like $UST failed because of core design flaws. Poor token designs have created liquidity imbalance and non-composability. For example, there’s no reason to hold $USDe when $sUSDe earns the yield. @solomon_labs asked the right question: “Why split the stablecoin into two tokens at all?" "Why can’t the stablecoin *itself* earn yield?” So they rebuilt the rails so the stablecoin itself $USDv: - earns yield directly - does NOT rebase (your balance stays the same) - remains fully composable in DeFi - gets the yield streamed into your wallet automatically - $1.5 Million in TVL, distributed over $30k in Real Yield This is the key innovation: Yield streams to the wallet, not into the token. The design unlocks use cases far beyond basic DeFi. Think: ➛Money markets ➛Automated LP pools ➛Payment rails ➛Neo-banking ➛Treasury management ➛Stable routing inside DEXs ➛Savings products built on top of USDV The $SOLO token sale is happening live at @metadaoProject $META and will launch in the next 13 hours: Listen to @oxranga and @joshuaricho from our session earlier, also follow @sptucha who is former Venmo/Paypal.
17.38K
20
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.