On July 3, stUSDT, the first RWA product in the TRON ecosystem, was launched, and on the first day of its launch, its total staking amount exceeded 22 million USDT. stUSDT is a platform that serves individual investors to invest in RWA products. The product has smoothed out the gap between individual investors and institutional investors, and built a bridge between the crypto world and the real world. stUSDT is currently mainly invested in government bonds, with interest rates anchored to the annual yield of government bonds, and the expected annual yield is about 5%.
Currently, RWA development is still in its early stages. However, its potential is huge. For Tradfi, DeFi’s biggest advantage is that it allows users who have been rejected by traditional finance to participate in financial activities, and it eliminates many of the third-party intermediaries that traditional finance requires for user qualification assessments and other middlemen. For DeFi, RWA can expand DeFi’s asset base, cover more real-world assets, and provide sustainable, diverse, and real yield supported by traditional assets.
Now that stUSDT has entered the game, it is undoubtedly a strong player in the RWA field with the absolute advantage of USDT on the TRON network and its almost barrier-free product features. For this reason, the Blocking reporter interviewed Sun Yuchen, founder of TRON, and a member of the global advisory committee of Huobi, and talked with him about his thoughts on the RWA track, the product features of stUSDT, and the future development plan. The following is the transcript of the interview:
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Blocking: Can you briefly introduce the stUSDT platform and its products?
Sun Yuchen: The stUSDT platform is committed to establishing a bridge between individuals and institutional investors, the crypto world and the real world through smart contracts, smoothing out the gap between individual investors and institutional investment targets, and providing a more fair RWA investment channel for everyone. It is a pioneer in connecting RWA to the crypto field in the TRON network.
The stUSDT token is a decentralized voucher protocol that connects real-world assets, and users can participate in real-world investments and earn passive income from RWA by holding stUSDT. stUSDT builds decentralized investment strategies, asset management mechanisms, determines investment and data disclosure strategies through smart contracts.
Currently, stUSDT was officially launched at 21:00 on July 3, East Eight District Time. On the first day of its launch, its total pledged amount exceeded 22 million USDT.
The stUSDT platform provides a complete set of user-friendly interactive interfaces for users to pledge and obtain stUSDT and to redeem and obtain USDT. The smart contract will provide profits to stUSDT holders through the Rebase mechanism, and the amount of stUSDT held by users will gradually increase. For more information, please refer to Medium. The smart contract will always maintain a 1:1 exchange ratio between stUSDT and USDT to ensure that users can profit.
Blocking: Can you introduce the founding team members?
Sun Yuchen: The founding team of stUSDT consists of experienced cryptocurrency practitioners and investment professionals.
Blocking: What pain points do you think the stUSDT platform has solved for users investing in RWA track products?
Sun Yuchen: This is reflected in the unique profit mechanism of stUSDT. The profit mechanism of stUSDT allows users to participate in real-world investment and obtain passive income related to RWA by holding stUSDT. The decentralized investment strategy and asset management mechanism constructed by smart contracts, as well as the established investment and data disclosure strategies, ensure that stUSDT holders can obtain profits through the Rebase mechanism and gradually increase the amount of stUSDT held, for more information please refer to Medium. At the same time, the smart contract always maintains a 1:1 exchange ratio between stUSDT and USDT to ensure that users can profit.
Such a mechanism provides users with opportunities to participate in actual assets, transparency, and trust, and enables them to effectively manage and plan their assets.
Blocking: What is your overall judgment on the RWA track now? For example, what stage has it developed to? What is the significance of RWA to Tradfi? What is the significance of RWA to Defi? For investors, what are the advantages of investing in RWA compared to investing in other track assets and compared to traditional Defi products?
Blocking: What are the competitive products of stUSDT platform? Compared to them, what are the advantages of stUSDT platform?
Sun Yuchen: Chain-based bond platforms like Ondo and Matrixdock launched by DeFi companies are competitors of the stUSDT platform. Compared to these platforms that have been developed for a period of time and are relatively mature, stUSDT platform has the following advantages:
- Decentralization: stUSDT is a decentralized platform built on the TRON smart contract, and users can participate in real-world investments through smart contracts and earn passive income through stUSDT.
- High security and efficiency: the smart contract of stUSDT adopts a secure and efficient Rebase mechanism, ensuring the safety of users’ investments and stable income.
- Transparency and fairness: stUSDT provides comprehensive data disclosure and asset management mechanism, ensuring the transparency and openness of investment information and providing users with more fair investment opportunities.
- At the same time, the biggest advantage of stUSDT is its TRON-based ecosystem, which has high efficiency, low transaction costs, and a huge circulation of stablecoins, which can better meet users’ investment needs. The TRON ecosystem itself also has strong development and community support and is expected to become one of the infrastructure of a wider range of decentralized financial applications in the future.
Blocking: What is the average return rate that you estimate users will invest in stUSDT? How is this number estimated?
Sun Yuchen: The expected annualized return rate of the product is currently about 5%. From July 10th to August 10th, the platform will also launch a subsidy activity with an annualized rate of up to 10% to help users obtain better returns.
stUSDT is currently mainly invested in government bonds as the main investment target, and the interest rate is anchored to the annualized return rate of government bonds, with the characteristics of depositing and withdrawing at any time, and has extremely strong flexibility. Through the Rebase mechanism, stUSDT automatically updates the balance of users’ stUSDT tokens every day, allowing users to obtain stable returns.
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