OKX announced that PayPal’s USD-pegged PYUSD stablecoin will be listed for trading on the platform starting October 3rd.
The exchange said the PYUSD call auction will be conducted from 11:00 AM to 12:00 PM UTC, with spot trading beginning immediately thereafter. However, users will not be able to withdraw their stablecoins until October 4th at 10am UTC.
OKX’s decision reflects the growing adoption of PYUSD in recent months. Earlier this week, MoonPay also integrated PYUSD, allowing users to purchase stablecoins using all major payment methods in supported countries except Canada.
PYUSD is a stablecoin redeemable for US dollars and is backed by US dollar deposits, short-term US Treasuries, and similar assets.
PYUSD has experienced significant growth following its expansion to the Solana blockchain, reaching a market cap of over $1 billion in August. However, its market capitalization has fallen to approximately $716 million as of this writing.
Reasons why PYUSD supply decreased
The recent decline in PYUSD supply is related to the decline of the incentive program for digital assets on the Solana blockchain.
Solana-based PYUSD supply, which once stood at more than $660 million, has fallen by more than 50% to $314 million in the last month, according to DeFiLlama data. In contrast, the amount of PayPal’s stablecoin on Ethereum increased by 7% to reach $377 million.
Solana enthusiast Tom Solport explained that the rewards that PYUSD initially offered were too high, but they ended quickly. He noted that high yields attracted many farmers, but when profits plummeted, users returned to USDC.
Tom believes that a stable annual percentage yield (APY) of 11% over 12 months would be more sustainable and could help ensure better integration with centralized exchanges (CEX). I suggested that there is.
He added:
“I think perhaps their incentive strategy was to encourage large OTC orders and senior MCs to encourage farmers to switch to Pyusd to negotiate with CEX for integration. That’s why the campaign was run that way.”
Posts mentioned in this article: OKX, stablecoin
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