Paxos South America* has officially launched the yield-bearing stablecoin, Wrapped Lift Dollar (wUSDL), to the Injective ecosystem. Now users can utilize this new stablecoin across Injective’s suite of DeFi protocols all while earning yield by holding the asset.
The stablecoin earns yield from short-term treasury bills and cash equivalents, and this in turn is passed back to the holder of the asset. Potential use cases include: using wUSDL for margin when trading derivatives, using the asset for lending protocols or deploying into various money market platforms on Injective.
A Yield-Bearing Stablecoin
Paxos International is the issuer of USDL which aims to be backed 1:1 for every dollar held in reserves one USDL will exist on-chain. Traditionally, stablecoins are pegged to fiat currencies, but the yield from these reserves—often held in treasury bills—is retained by the issuer. In its native form, USDL generates daily interest, and users receive this yield in the form of dividends that accrue to the user’s wallet.
What is wUSDL?
wUSDL is a wrapped version of USDL designed to deliver these benefits on a growing variety of blockchains. Unlike a rebasing token that increases the number of tokens in circulation to reflect yield, wUSDL's value grows over time, capturing daily dividends from treasury yields. Users can unwrap their wUSDL at any time, converting it back into USDL on Ethereum.
This seamless integration into Injective enables users to benefit from the variable yield generated by USDL without the need for daily token rebasing. With a steadily increasing value (currently offering a 4.7% annual yield, subject to change), wUSDL is designed to enhance capital efficiency and enable users to hold an asset that generates yield passively.
How wUSDL Works on Injective
As a wrapped asset, wUSDL maintains the price of USDL while including its yield growth. This allows Injective users to engage in a wide variety of decentralized applications (dApps), including derivatives trading, lending protocols, and money market platforms, all while benefiting from the passive yield generated by USDL’s treasury-backed asset.
For instance, wUSDL can be used as collateral or margin in trading on decentralized exchanges (DEXs), like Helix, built on Injective. Injective users also have the option to convert wUSDL back to USDL, receiving the native USDL stablecoin on Ethereum as well as any additional yield accrued while holding wUSDL.
A Milestone for Tokenized Assets on Injective
The launch of wUSDL on Injective represents a step forward in the development of tokenized assets for the Injective ecosystem. In fact, Injective currently ranks in the top 3 of blockchain ecosystems for tokenized assets. Recently released tokenized assets include BlackRock’s BUIDL index, Euros, Yen, Gold and more.
By bridging the gap between traditional finance and decentralized finance, Paxos is enhancing the user experience to interact with regulated, yield-bearing assets within the rapidly growing Injective ecosystem.
With wUSDL, Injective continues to build on its reputation as the blockchain built for finance, offering users the ability to engage with real-world assets (RWAs) like treasury-backed stablecoins in a secure and efficient manner. The integration of wUSDL unlocks new possibilities for capital utilization and passive income generation, setting the stage for further innovation in the space.
As Paxos and Injective continue to push the boundaries of what’s possible in DeFi, the introduction of wUSDL brings together the best of both traditional finance and blockchain technology, empowering users to earn, trade, and invest with greater efficiency and flexibility.
The Future of Yield-Bearing Stablecoins
Paxos choosing to launch their wUSDL stablecoin on Injective underscores the growing demand for stablecoins that offer both stability and yield to users. The introduction of wUSDL into the Injective ecosystem is an enabler of future developments in the DeFi space, where the convergence of TradFi and DeFi will continue to shape the next generation of financial products.
As more users explore the benefits of yield-bearing stablecoins, Paxos and Injective are at the forefront of this new frontier, delivering institutional-grade, regulated, and innovative solutions for DeFi participants around the world.
NOTE: This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America (including its territories and possessions, any state of the US and the District of Columbia). This announcement is not an offer of securities for sale in the US. The digital assets referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended and may not be offered or sold in the US, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the US. USDL is not available to residents of certain jurisdictions, including the United States, and the United Arab Emirates except ADGM, the United Kingdom, the European Union, Canada, Hong Kong, Japan or Singapore.
Disclaimer: This article is for informational purposes only and is not financial or investment advice, or an endorsement of any project. As always, users should do their own research. The information contained in this article is intended to be current at the time of publication, but may not remain so indefinitely.
*Paxos South America is incorporated as Bruntal S.A., a Uruguayan company"
About Injective
Injective is a lightning fast interoperable layer one blockchain optimized for building the premier Web3 finance applications. Injective provides developers with powerful plug-and-play modules for creating unmatched dApps. INJ is the native asset that powers Injective and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by prominent investors such as Jump Crypto, Pantera and Mark Cuban.
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About Paxos
Paxos is the leading regulated blockchain infrastructure and tokenization platform. Its products are the foundation for a new, open financial system that can operate faster and more efficiently. Today, trillions of dollars are locked in inefficient, outdated financial plumbing that is inaccessible to millions of people. Paxos is replatforming the financial system to enable assets to instantaneously move anywhere in the world, at any time, in a trustworthy way.Paxos partners with leading global enterprises to tokenize, custody, trade and settle assets. Its blockchain solutions are used by leaders like PayPal, Interactive Brokers, Mastercard, Mercado Libre and Nubank. It is the issuer of numerous regulated digital assets including PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (PAXG). Prudentially regulated by the NYDFS in the US,the MAS in Singapore and FSRA in the Abu Dhabi Global Market, Paxos is a top-funded fintech company with more than $540 million raised from leading investors including Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital and PayPal Ventures.
Its affiliate company Paxos International issues the yield-bearing regulated stablecoin Lift Dollar (USDL). wUSDL is issued by Paxos South America*, a Paxos Group company.