Today, the Genius stablecoin draft was preliminarily approved, igniting everyone's attention and enthusiasm for the stablecoin sector 🔥

Coincidentally, there is a very prominent project in this sector in Asia, @veloprotocol, which has just officially announced a strategic partnership with the well-known regulatory blockchain infrastructure platform @Paxos, integrating Lift Dollar (USDL) into the Velo ecosystem.

Therefore, taking advantage of this industry hotspot, I would like to explain the strategic significance of this collaboration 👇

Let's first introduce the three concepts of Velo Labs, Paxos International, and USDL in detail separately.

1⃣ Velo Labs

is an innovator focused on Web3 financial infrastructure, dedicated to promoting PayFi and the tokenization of real-world assets (RWA) through blockchain technology. It aims to provide efficient and secure financial services to global users through a decentralized clearing network and cross-border stablecoin system, with its core stablecoin product being USDV.

Velo has performed exceptionally well in the Southeast Asian market, not only being a leading enterprise in the PayFi and RWA fields in Southeast Asia, but also showing significant potential when compared to the leaders in these two sectors globally.

2⃣ Paxos International

is a regulated blockchain infrastructure platform known for its stablecoin products (such as Pax Dollar and Pax Gold). The company is committed to compliance and has obtained regulation from the New York State Department of Financial Services (NYDFS), the Monetary Authority of Singapore (MAS), and the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market.

3⃣ Lift Dollar (USDL)

is a newly issued stablecoin by Paxos, regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), ensuring that its issuer, Paxos, has ample liquid assets available for 1:1 exchange with the US dollar.

The unique position of USDL is that it is the industry's first regulated interest-bearing stablecoin. The characteristics of being “regulated” and “interest-bearing” may not seem significant when viewed separately, but if these two features can be successfully combined, it can pose a dimensional reduction strike against other projects that are either just “regulated” or just “interest-bearing,” making it highly attractive to both traditional DeFi users and institution-level clients with high compliance requirements.

In this light, the significance of the partnership between Velo Labs and Paxos International speaks for itself:

Paxos can leverage Velo's advantageous position in the Southeast Asian market to promote the first regulated interest-bearing stablecoin USDL, while Velo can showcase the stability and investment appeal of its ecosystem to compliance-focused institutional clients during this collaboration.

Opportunities for Traders

Under this cooperation, the usage rate and trading volume of USDL will naturally increase, bringing some hidden wealth opportunities. There is a platform offering everyone a way to benefit multiple times:

The @0xCoinshift platform uses USDL as the underlying support and employs @MorphoLabs' lending yield as the interest-bearing strategy to issue $csUSDL.

$csUSDL was launched last month on the @pendle_fi platform, providing two yield models:

PT-csUSDL —— enjoy fixed yield;

YT-csUSDL —— enjoy 30x SHIFT points bonus (the highest points bonus on the pendle platform), along with variable APY yield.

Additionally, there is also the option to choose the LP csUSDL yield model as a compromise between the first two models.

Long-term Vision

This collaboration not only brings higher-quality stablecoin assets to Web3 users in Southeast Asia but also provides enterprises with interest-bearing assets as an alternative to the highly volatile DeFi native rewards. Furthermore, it could potentially compel other stablecoin projects to also consider “interest-bearing” as a necessary condition, setting a new standard in the stablecoin industry.

This collaboration showcases Velo Labs' immense ambition and firm determination to pursue a compliant path, and we may be witnessing the rise of a world-class challenger in the PayFi and RWA fields.