3 months ago
Reeve Collins, 1 of the archetypal architects down Tether USD (USDT), is backing a caller yield-bearing stablecoin task called Pi Protocol.
Collins co-founded Tether alongside Brock Pierce and Craig Sellars and served arsenic its archetypal CEO from 2013 to 2015.
According to a Bloomberg News report, the decentralized stablecoin volition motorboat successful the 2nd fractional of 2025 and volition initially beryllium disposable connected Ethereum and Solana.
USP is Pi Protocol’s stablecoin, which is minted utilizing astute contracts. The stablecoin volition beryllium over-collateralized with assets specified arsenic US Treasuries, money-market funds, and security products.
Collins said successful an interview:
“We presumption Pi Protocol arsenic the improvement of stablecoins. Tether has been highly palmy successful showcasing request for stablecoins. But they support each the yield. We judge 10 years later, the marketplace is truly acceptable to evolve.”
He added that Pi Protocol aims to capitalize connected the expanding stablecoin marketplace and the increasing relation of real-world assets successful crypto.
Additionally, minting USP volition reward users with different token, the USI, whose details were not disclosed.
The project’s official website besides mentions USPi, a yield-bearing non-fungible token (NFT). Holders volition person a stock of the platform’s revenue, which comes from assorted sources, including output from stablecoin minting.
USPi holders volition besides person decision-making powerfulness and volition ballot connected hazard parameters, collateral policies, and gross distribution. Pi’s squad and advisors person been allocated 25% of the governance token supply, with a pre-sale underway.
Importance of yield-bearing stablecoins
Vlad Tenev, CEO of Robinhood, precocious warned during a Bloomberg TV interrogation that stablecoins indispensable connection yield-accrual alternatives to vie with different methods of holding and transacting dollars.
He added that though currency deposited successful banks tin accrue a 4% output successful a high-interest environment, offering this output done stablecoins is not simple.
USDe offered holders a astir 30% yearly percent output (APY), but its dynamic rebalancing decreased the output to 6% arsenic of property time. Ethena Labs’ stablecoin is the third-largest successful the market, surpassing seasoned DAI by astir $1.5 billion.
The station Tether co-founder backs caller yield-bearing decentralized stablecoin appeared archetypal connected CryptoSlate.
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