Summary
PayPal’s dollar-pegged stablecoin, PYUSD, has grown to a market capitalization of $290 million, making it the twelfth largest stablecoin in the crypto industry. PYUSD is starting to establish a presence in decentralized finance (DeFi), with a pool combining PYUSD and the stablecoin FRAX becoming the fourth largest on Curve Finance. The pool allows traders to swap FRAX for PYUSD and vice versa. Additionally, there is a second pool for PYUSD paired with USDC. PayPal has also deposited funds to incentivize liquidity in the PYUSD-USDC pool. Furthermore, there is a proposal to add PYUSD as collateral in Aave’s lending protocol, with voting unanimously in favor of the move.
Key Points
1. PYUSD, the dollar-pegged stablecoin released by PayPal, has experienced significant growth, reaching a market capitalization of $290M. It is now the twelfth largest stablecoin in the crypto market.
2. PYUSD has established a presence in decentralized finance (DeFi) through its integration with Curve Finance. A pool combining PYUSD and the stablecoin FRAX has become the fourth largest on Curve, allowing users to swap between the two stablecoins.
3. There is a proposal underway to add PYUSD as collateral in Aave, a popular lending protocol in DeFi. The proposal has received unanimous support from AAVE token holders, with voting in favor of onboarding PYUSD on the platform.