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marginfi Launches YBX, a High-Yield Stablecoin on Solana

marginfi, a Solana-based lending protocol, has announced the launch of YBX, an over-collateralized stablecoin that is backed by liquidity-collateralized tokens (LSTs). LSTs are tokens that represent a share of the liquidity pool in marginfi, and they can be used to borrow, lend, or stake in the protocol. YBX is expected to launch on the mainnet in mid-to-late March, and it will offer a competitive yield to its holders.

According to the marginfi website, YBX will earn three sources of income: Solana staking yield (~8%), miner extractable value (MEV) capture (LSTs using Jito’s MEV client), and lending yield (in marginfi). This makes YBX one of the highest yielding decentralized stablecoins in the crypto space, as well as a decentralized, diversified, and secure alternative to other stablecoins backed by centralized assets, such as USDC, USDT, DAI, and FRAX.

YBX will be fully collateralized by LSTs that users have lent into marginfi. Users can obtain LSTs by depositing Solana (SOL) or its wrapped versions, such as jitoSOL, mSOL, and bSOL, into the marginfi liquidity pool. Users can also swap their existing LSTs for YBX, or vice versa, at a 1:1 ratio. marginfi claims that YBX will maintain a 1:1 peg to the US dollar, and that it will have a low slippage and high liquidity in the Solana ecosystem.

marginfi is one of the leading protocols on Solana, a fast, scalable, and low-cost blockchain platform. With $580 million in total value locked (TVL), marginfi is the third largest TVL protocol on Solana, after Raydium and Serum. marginfi aims to provide users with a comprehensive and flexible lending solution, where they can borrow, lend, and stake various assets with low fees and high efficiency.

YBX is the latest addition to the growing stablecoin market, which has seen a surge in demand and innovation in recent years. Stablecoins are digital tokens that are designed to maintain a stable value relative to another asset, such as the US dollar or gold. They are widely used for trading, payments, remittances, and savings in the crypto space, as they offer stability, liquidity, and interoperability. According to CoinGecko, the total market capitalization of stablecoins has reached over $100 billion, with USDT, USDC, and DAI being the top three by market share.

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