Curve Finance Expands Liquidity Pools with sDAI and stUSDT Yield-Bearing Tokens

By 0xK2 10/13/23 4:28 AM

Curve Finance, a decentralized finance (DeFi) community, has recently proposed the creation of liquidity pools featuring two interest-bearing tokens: sDAI and stUSDT. This proposal successfully passed through the discussion and voting phases, marking an exciting development in the DeFi space.

The two tokens in question are stUSDT, an interest-bearing version issued by Tron, and sDAI, an interest-bearing version resulting from MakerDAO’s Real World Assets (RWA) operations. These tokens have caught the attention of DeFi enthusiasts for their potential to generate passive income.

Notably, the community had initiated another significant proposal back on September 20th. The proposal aimed to explore the use of updated versions of Vyper as the foundation for integrating pools for interest-bearing tokens, often referred to as Yield-Bearing Tokens and Rebased Tokens. Although this proposal isn’t directly related to the stableswap-ng (currently undergoing audits), it represents a quick update, primarily focused on upgrading the Vyper version. The successful implementation of this proposal is expected to serve as the technical infrastructure for integrating the aforementioned tokens.

Very important vote. Not yet stableswap-ng (which is in audits), but a quick update (vyper version mostly) for battle-tested stableswap implementations with rebased and rate-oraclized tokens. Biggest change is upgrading the Vyper versionhttps://t.co/BooAFTw7fI

— Curve Finance (@CurveFinance) September 19, 2023

Of the two tokens, sDAI has been attracting significant attention within the community due to its 5% interest rate from accrued bond activities. This makes it an appealing option for yield-seeking investors looking to maximize their returns.

Conversely, stUSDT has raised concerns in the community regarding its transparency and origin. Tether, the company behind USDT, has even issued statements clarifying that they have no involvement in this product’s development. According to Tether, stUSDT is solely a unilateral effort by Tron.

As of October 12th, Curve Finance has officially launched two new liquidity pools for stUSDT and STBT, which are part of the “Real World Assets” category. Additionally, at the time of this article’s publication, a liquidity pool for sDAI has also been introduced. However, the encouraging yield from these pools has yet to reach substantial levels, resulting in relatively lower liquidity, currently sitting at around $22,000.

Maybe few noticed, but two RWA-crvUSD pools got first incentives pic.twitter.com/UCpBAuQoVA

— Curve Finance (@CurveFinance) October 12, 2023

This move by Curve Finance signifies the DeFi industry’s constant evolution and adaptation to market demands, as new interest-bearing tokens are integrated into the ecosystem. Investors and DeFi enthusiasts will undoubtedly keep a close eye on the performance and growth of these liquidity pools as they unfold in the coming weeks and months. The expansion of DeFi options brings both exciting opportunities and challenges, further solidifying its position as a transformative force within the global financial landscape.

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