sUSD: The Next Generation RWA-Backed Stablecoin
Since the early days of cryptocurrency, stablecoins have held a special place in the ecosystem. They were created to offer a reliable, stable currency for transacting in the volatile world of crypto. Yet, from the inception of BitUSD (one of the earliest stablecoins) to today’s expansive stablecoin market, stability has often been more of an ambition than a guarantee. Imagine trusting your savings to a “stable” currency, only to find its stability shattered overnight. This isn’t just a hypothetical situation — it’s a reality that thousands of crypto users faced during the UST collapse, which wiped out over $40 billion in what became one of crypto’s darkest moments.
Today, two major types of stablecoins lead the market: centralized giants like USDC and USDT, which rely on traditional institutions, and algorithmic stablecoins, which attempt to hold value through complex financial models. But neither approach has delivered the resilient stability the crypto world needs. What if there were a better way? What if a stablecoin could be reliably backed by real-world assets (RWAs), be permissionless, and even generate yield for holders without additional work?
This is where sUSD steps in. Built on Solana, sUSD isn’t just another stablecoin — it’s a reimagination of stability itself. Through a novel approach combining real-world asset backing, automatic yield generation, and true decentralization, sUSD is designed to not only deliver reliable stability but also to support a truly open, permissionless financial system.
In this post, we’ll explore how sUSD redefines what a stablecoin can be, with innovations in:
- Stability through real-world assets (RWAs)
- Automated yield generation
- Permissionless access and decentralization
- Securing the future of open internet infrastructure
Stability Through Real-World Asset (RWA) Backing
It is important that stablecoins are actually stable. To achieve this, various backing models have been tested over the years: fiat reserves, crypto reserves, algorithmic mechanisms, and now, real-world assets (RWAs). Among these, RWAs offer a compelling balance of stability, yield potential, decentralization, and security.
sUSD leverages the Request-for-Quote (RFQ) protocol, a mechanism designed to tap into a wide network of liquidity providers who tokenize real-world assets such as U.S. Treasury bills, bonds, commodities etc. With this mechanism, sUSD can find the best rates across these providers and automatically manage minting, redemptions, and yield distribution — all without custodying assets or relying on central intermediaries. This creates a robust, RWA-backed foundation that not only simplifies asset diversification but also enhances stability for sUSD holders, giving them peace of mind.
Automatic yield generation for holders
sUSD generates a yield of 4–5% through the real-world assets (RWAs) backing it, currently consisting solely of T-bills. This yield is automatically distributed to users through balance multipliers rather than increasing the token count. The final token amount in a user’s wallet is calculated by multiplying the scale factor with their actual holding amount. This mechanism allows the balance of sUSD in a wallet to grow over time, similar to how a bank account balance increases with interest.
The interest on sUSD is automatically distributed through balance updates, allowing users to earn an annual yield of 4–5% based on the yield from RWAs (initially from T-bills) just by holding sUSD.
Additionally, sUSD holders can optionally delegate their holdings to Exogenous Actively Validated Services(exoAVS), which are modular systems running alongside Solana. By restaking sUSD, users can earn the intrinsic RWA-backed yield while gaining exposure to extra returns from contributing to the security of modular systems like oracles, bridges, network extensions, rollups, and more.
Permissionless access and true decentralization
sUSD permissionless design eliminates reliance on any single entity to custody or authorize assets, essential for a trustless financial system. sUSD operates transparently on-chain, allowing for open, decentralized interactions.
Users can mint, redeem, and tract yield autonomously. This structure enhances accessibility and makes sUSD available globally without needing to interact with centralized intermediaries.
All transactions and RWA holdings are transparent and verifiable on the Solana blockchain. This gives users confidence that the backing assets are in place and yields are distributed fairly and accurately.
Securing the future of open internet infrastructure
Beyond its role as a stablecoin, sUSD holders can delegate their tokens to exogenous Actively Validated Services (exoAVS), such as oracles, bridges, and other modular systems, bolster security for decentralized infrastructure on Solana. While holding sUSD earns intrinsic yield through RWAs, delegating to exoAVS generates additional returns, creating incentives for users to contribute to the stability and security of interconnected systems. By participating in securing these AVSs, sUSD supports broader decentralized system integrity, making it a strategic asset for ecosystem resilience on Solana and beyond.
Possible usecases of sUSD
Imagine all the ways you might use a traditional currency like the dollar, euro, or whichever one you hold right now — whether saving, trading, securing, or spending it. sUSD unlocks these possibilities within the decentralized world of Solana, offering unique benefits backed by real-world assets.
As a decentralized “savings account,” sUSD provides holders with a steady 4–5% annual yield, allowing their assets to grow automatically over time. This makes sUSD an ideal choice for investors seeking low-risk, passive returns. But it doesn’t stop at savings. sUSD holders can also support Solana’s network by delegating their tokens to exogenous Actively Validated Services (exoAVS) such as oracles and bridges, earning extra rewards while contributing to the security and resilience of decentralized infrastructure.
In the world of decentralized finance (DeFi), sUSD shines as a stable collateral option for loans and leveraged positions, minimizing volatility risk while generating a yield. Traders can use sUSD to lock in profits or hedge against market swings confidently. And for everyday transactions, sUSD offers a reliable payment method that benefits both merchants and users with its stability and built-in yield, creating a productive and versatile asset for various uses on Solana.
So what’s next?
You can checkout and participate by following these steps:
- Convert all stablecoins into USDC
- Visit app.solayer.org
- Deposit USDC to redeem sUSD
- Receive sUSD in your wallet
- Earn 4.33% Treasury Bill yield in USDC
