PYUSD now ranks because the tenth-largest stablecoin by market cap.
PayPal’s PYUSD is more and more changing into embedded in DeFi, with Morpho Blue, a decentralized lending protocol, asserting a brand new vault supporting the stablecoin.
On Feb. 14, Morpho introduced the launch of a PYUSD vault curated by Steakhouse Monetary — a DAO-focused monetary advisory agency offering companies to high web3 initiatives together with MakerDAO and Lido.
Liquidity suppliers can earn curiosity on PYUSD lent out to debtors. The vault solely helps Lido’s wstETH liquid staking token and Backed’s tokenized U.S. Treasury Payments as collateral property.
Morpho mentioned it’s the first touchdown platform to launch help for PYUSD. The Aave group voted to help PYUSD to its cash market protocol with 99.99% help in early January however is but to onboard the token.
“This transfer additional underscores PayPal’s dedication to fostering a vibrant and inclusive DeFi ecosystem,” an announcement mentioned. “This integration considerably strengthens the utility of PYUSD inside the DeFi panorama, which has already change into one of many high 10 stablecoins since its launch just a few months in the past.”
DeFi drives progress for PYUSD
Paxos, PYUSD’s issuer, is searching for to drive up the stablecoin’s adoption by means of DeFi integrations. The corporate enlisted Trident Digital to advertise the stablecoin as a automobile for DeFi yields, with Trident authoring the unique Aave proposal and pushing integrations on Curve Finance.
PYUSD was launched in August however initially struggled from sluggish adoption, with every day quantity sitting under $10,000 and simply 10 wallets holding greater than $3,000 PYUSD three weeks after its mainnet deployment.
PYUSD’s progress picked up considerably in December following the deployment of two Curve Finance swimming pools for the stablecoin in December. 5 PYUSD swimming pools at the moment are dwell on Curve, with FRAX/PYUSD rating because the fourth-largest pool on the protocol with a TVL of $128.3, though Frax reportedly controls nearly all of its liquidity.
PYUSD’s market cap doubled to $300M for the reason that begin of December, whereas every day quantity is up greater than 600% at $22M over the identical interval, based on CoinGecko. PYUSD is the tenth largest stablecoin and ranks eighth by quantity.
