Recently, sUSD has become a 'hot potato' in the crypto circle. Some might ask: Isn't it just a stablecoin? Why is it said to be able to 'earn money while lying down'? To understand this question, we need to start from the underlying logic.
First, we need to understand what a stablecoin is. Simply put, stablecoins were created to address the issue of large price fluctuations in cryptocurrencies. For example, Bitcoin and Ethereum can have wildly varying prices in a single day; today they might rise by 20%, and tomorrow they could drop by 30%, making them unsuitable as stable value storage tools. The mission of stablecoins is to peg to a stable asset to maintain a relatively stable price, facilitating transactions, payments, and savings in the crypto world.
The biggest difference between sUSD and other stablecoins lies in its backing by U.S. Treasury bonds. U.S. Treasury bonds are globally recognized as one of the safest assets. As the world's largest economy, the U.S. has a high credit rating, and the likelihood of default on Treasury bonds is extremely low. With sUSD backed by U.S. Treasury bonds, it essentially provides a 'safety lock'. For every sUSD issued, there is an equivalent amount of U.S. Treasury bonds as support. This 1:1 asset reserve model ensures that the value of sUSD does not easily fluctuate and remains steadily pegged to the U.S. dollar at a 1:1 ratio.
So, where does the 'easy money' profit come from? This relates to the characteristics of U.S. Treasury bonds. U.S. Treasury bonds are essentially bonds issued by the U.S. government when it borrows money from investors. When investors buy Treasury bonds, they are lending money to the U.S. government, which will pay interest as agreed. The issuer behind sUSD acquires interest income by purchasing U.S. Treasury bonds. Then, they take a portion of this income and distribute it to sUSD holders, which is the source of the 4% annual yield we receive.
For example, suppose you hold 10,000 sUSD with an annual yield of 4%. After one year, you would earn 400 sUSD in profit. This is much more cost-effective than keeping money in a bank's savings account! Furthermore, this profit does not require you to monitor K-line charts and analyze market trends like in cryptocurrency trading, nor do you have to bear the risk of price crashes. You just need to keep sUSD in your wallet, and the earnings will be regularly credited to your account like bank interest.
If it's just about wealth management, sUSD, while impressive, is not particularly unique. What truly makes it 'legendary' is that it can be used directly as cash! After binding the Emerald Card launched by Solayer, sUSD instantly transforms from a virtual asset in a digital wallet to 'real money' that can be spent in the real world. Whether placing an order on an online shopping platform, swiping a card at a physical store, or even paying bills while traveling abroad, as long as it supports Visa, the Emerald Card can handle it easily. Previously, cashing out investment earnings involved a complicated withdrawal process; now, buying a cup of coffee or having a hot pot meal can be done directly with the Emerald Card. The sUSD in the card not only facilitates payments but also continuously enjoys a 4% annual yield. This 'spend while earning' experience is what truly gives sUSD an edge over traditional wealth management!