Paxos has launched the new Wrapped $USDL stablecoin on the Injective platform, combining stability and yield.

A New Era of Yield-Bearing Stablecoins

Wrapped $USDL disrupts the traditional stablecoin model, allowing users to earn daily interest on their holdings. This interest is delivered as dividends through short-term treasury bills and cash equivalents, offering an annual yield of approximately 4.7%. Users can unwrap their tokens back to USDL on Ethereum, enhancing capital efficiency.

Benefits of wUSDL in the Injective Ecosystem

The integration of wUSDL into the Injective platform extends its use across various dApps. It can be used as collateral on DEXs or in lending protocols, broadening financial strategies like margin trading and liquidity provision. Users benefit from yield without complex token rebasing.

A Milestone for Tokenized Assets

Injective views the launch of Wrapped $USDL as a significant milestone in tokenized asset development. Products like BlackRock's BUIDL index, supported by treasury bills and cash equivalents, offer stable yields. BUIDL holds a considerable amount under management, marking it as the largest tokenized fund.

The launch of Wrapped $USDL signifies a crucial development for DeFi and tokenized assets, offering users a blend of stability and yield.