sUSD is the first restaking and yield-bearing stablecoin on Solana. It offers holders a reliable ~4-5% yield as it is backed by US treasuries. 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:

  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 restakers 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 Integration: 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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What is sUSD?RFQ Overview