What is sUSD?

With the Solana stablecoin market cap standing at $3.5B+, and over $2B in stablecoin assets flowing into Solana from other ecosystems in just the past year, we see tremendous growth potential - Building utility around stablecoins holds immense promise.

Solana’s stablecoin ecosystem is growing rapidly, attracting new assets and demonstrating robust confidence in its infrastructure.

To build on this momentum, we’ve created sUSD — a pioneering yield-bearing stablecoin designed to enhance utility within the Solana network.

Our vision goes beyond just launching a stablecoin; we aim to lay the foundation for a bankless economy while fortifying the future of decentralized systems. With sUSD, we’re not only enhancing stability and growth within the Solana ecosystem. We’re paving the way for a more robust and interconnected financial infrastructure landscape.

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About sUSD

sUSD is the first ever yield-bearing stablecoin on Solana that is pegged to the U.S. dollar and backed by U.S. Treasury Bills (T-bills). This ensures that sUSD maintains a 1:1 peg with the U.S. dollar while simultaneously generating a 4-5% yield through T-bills, one of the safest short-term government debt instruments.

By serving as a reference implementation for the token 2022 interest-bearing extension, sUSD reinforces the stability of its 1:1 USD peg. The sUSD pool makes yield generation more accessible and efficient for the stablecoin ecosystem.

Given the constraint of Solana’s account model, we can’t mint tokens easily to all holders. So the interest bearing extension works in the way that it changes the “multiplier” of the holding amount with interest accumulation rather than changing the amount.

The token amount is then calculated by multiplying the scale with the actual holding amount. This allows the amount of sUSD in a wallet to increase natively, much like the balance in a bank account grows with interest.

The interest on sUSD is distributed through automatic balance updates, allowing users to accumulate an annual yield of approximately 4-5% based on T-bill yield simply by holding sUSD.

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sUSD Features

sUSD is breaking new ground as one of the most uniquely positioned digital assets. Due to these unique attributes, we envision sUSD becoming a dominant payment method, trading asset, collateral asset, and much more.

1. The first T-bill yield-bearing stablecoin on Solana
2. The first widely adopted implementation of Token 2022, bringing interest-bearing assets on-chain
3. Our RWA partner has the only tokenized U.S. Treasury product with an “A” rating from Moody’s, placing it in the “investment-grade” quality category by one of the leading global providers of credit ratings, research, and risk analysis. sUSD will also play a crucial role in securing Actively Validated Services (AVSs), because of its stable foundational value together with its reliable and open architecture:

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sUSD Value Propositions

1. Inherently Yield-Bearing: sUSD offers a 4-5% yield backed by the T-bill, providing a steady fundamental yield layer for users while they hold or use sUSD. This makes it a more attractive option compared to traditional stablecoins like USDC or USDT.
2. Securing External Systems: sUSD can be delegated to secure exogenous AVSs (exoAVSs), which are modular systems running in parallel to Solana. Through this process, sUSD depositors can earn intrinsic T-bill-backed yield while gaining exposure to additional returns by contributing to the security of modular systems such as oracles, bridges, network extensions, rollups etc.
3. DeFi Integrations: sUSD will be liquid from day one, thanks to deep integrations with DeFi protocols on Solana.

Ultimately, we envision sUSD becoming the on-chain liquidity layer, bridging fiat systems to the bankless economy.

This will also serve to attract more new users to Solana as supporting yield-bearing assets like sUSD can draw in new users who are looking for ways to optimize their capital efficiency and boost their yield without taking on extra risk. This serves a hybrid audience of both DeFi-native users looking for additional yield, as well as conservative investors and users seeking stable, low-risk yield.

Finally this would also lower risk for borrowers as sUSD maintains a stable value. This allows DeFi protocols to offer more favorable borrowing conditions and lower interest rates when sUSD is used as collateral, as the risk of liquidation due to price volatility is reduced.

For key protocol participants:

1. For Users: Access to a yield-bearing stablecoin with competitive exchange rates.
2. For Market Makers: Opportunity to earn commissions by providing liquidity.
3. For the Ecosystem: Enhanced liquidity and price discovery through decentralized competition.

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sUSD Token Info

To ensure transparency and verifiability for developers, integrators, and users, here are the key on-chain details of sUSD: