In a spectacular debut, Solayer USD [sUSD]—the first real-world asset [RWA] backed synthetic stablecoin on Solana [SOL]—surpassed 10 million USDC in deposits within its inaugural hour.
Data from Lookonchain indicates that the asset attracted close to 5,900 deposits. Currently, its Total Value Locked (TVL) stands at $11.31 million.
sUSD Adoption on Solana
This week, Solayer Labs, in partnership with OpenEden Labs, launched sUSD, a decentralized stablecoin pegged 1:1 to the U.S. dollar and collateralized by U.S. Treasury Bills.
As a key component of the 2022 interest-bearing token extension, sUSD reinforces the stability of its USD peg, thereby enhancing yield generation within the stablecoin ecosystem.
sUSD operates as a non-custodial Request-for-Quote (RFQ) marketplace, where token holders have exclusive rights to mint or burn sUSD. Serving as collateral for the Open Internet, sUSD, like sSOL, is secured by real-world infrastructure.
Functioning as Proof-of-Stake (PoS) collateral, sUSD plays a vital role in supporting off-chain systems that operate in conjunction with Solana, including bridges, oracles, and Layer 2 networks.
Additionally, sUSD automatically accrues a 4.33% interest from U.S. TBills in USDC, eliminating the need for minting or staking.
Impact on SOL’s Price Movement
Amidst the broader bullish trend triggered by Bitcoin’s resurgence, SOL has continued to perform well.
The launch of sUSD propelled SOL above the $180 threshold for the first time in almost three months.
Presently, SOL has retraced some of its gains, currently trading at $175. Based on CoinMarketCap data, the altcoin registered a 0.53% decline over the past day, although it posted a weekly gain of 1.76%.
Solana’s Increasing Attractiveness Compared to Ethereum
The introduction of sUSD marked a significant milestone for Solana’s ecosystem by introducing a yield-bearing stablecoin, underscoring the rising interest in Solana as an alternative investment.
Recent data from the weekly CoinShares report revealed that Solana witnessed inflows of $10.8 million, positioning it second only to Bitcoin with $920 million in inflows.
Conversely, Ethereum [ETH] experienced outflows of $34.7 million last week. Despite this, Ethereum surpassed Solana in year-to-date inflows [YTD].
While Bitcoin’s momentum remains influenced by U.S. political events, Solana’s inflows underscore its unique value proposition concerning scalability and decentralized applications.