Sui's DeFi success, with total value locked crossing half a billion dollars in just nine months, gets further bolstered by the launch of a new stablecoin-alternative, USDY, on the network this month. As a stablecoin-alternative, USDY's value is tied to the US dollar on a one-to-one basis, while also earning yields for owners, which in the current formulation adds to the price of the token.
Ondo Finance, creator of the USDY stablecoin alternative, backs the coin with short-term US Treasuries and bank demand deposits. The coin name stands for US Dollar Yield, signifying its yield-bearing feature.
Stablecoins such as USDC and USDT, a category similar to USDY, can be traded on Sui. However, these are non-native coins bridged to the network and wrapped in a smart contract to make them tradable on Sui DEXes.
Over the past six months, data analytics site Wormholescan showed that over $300 million in assets has been bridged from Ethereum to Sui, accounting for 64 percent of all coins bridged from Ethereum through Wormhole. Of the existing wrapped USDC and USDT stablecoins, Wormholescan shows Sui emits $46 million of the former and $18 million of the latter, making it a top venue for these stablecoins.
The availability of USDY on Sui gives DeFi users a coin option tied to the value of the US dollar and accruing interest.
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