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 in collaboration with OpenEden — a pioneering yield-bearing, restaking 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

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.