If you've used Alipay's Yu'e Bao, you'll easily understand sUSD. Yu'e Bao invests money in money market funds to earn interest, while sUSD is even better — it's backed by U.S. Treasury bonds! What does that mean? U.S. Treasury bonds are like the 'big brother' of the global financial world, with even central banks buying them, offering maximum stability. sUSD is like moving U.S. Treasury bonds onto the blockchain, where 1 sUSD will always be exchangeable for 1 dollar, absolutely no tricks!
To give a down-to-earth example: some cryptocurrencies we bought in the past experienced price swings like a roller coaster, and we might wake up to find our investments gone. But sUSD is like that super sturdy safe at home; the money you put in won't decrease, and it can 'grow' 4% interest every year! This is way better than throwing money into a regular bank savings account, guaranteed 'profit without loss'!
Some might be skeptical: is there really such a thing as a free lunch? Where does this 4% return come from? The principle is quite simple! You deposit USDC (a stablecoin) into the Solayer platform, and it will automatically convert it to sUSD, and this money will ultimately be 'loaned' to the U.S. government to buy Treasury bonds. The U.S. government uses the money for construction and welfare, and then shares some interest with us — it's that simple!
Moreover, this income is real 'passive income'! You don't need to watch the market every day or analyze candlestick charts, nor do you need to beg for investment opportunities. Putting money in is like raising a 'golden egg-laying chicken', which automatically deposits money into your account every day.
Speaking of which, some people might be worried: such a good deal, could it be a scam? To be honest, I had this concern at first too, but after thorough research, I found that the 'safety net' of sUSD is woven tighter than a spider's web!
First, it is backed by U.S. Treasury bonds, equivalent to having the world's largest economy as a safety net, which is a thousand times more reliable than some smaller platforms; second, all transactions are recorded on the blockchain, like being written in an unchangeable ledger, with the flow of every penny being crystal clear; finally, the Solayer platform has also found several backup suppliers to prevent unexpected issues, so even if one faces problems, the others can step in, minimizing risk! However, to be blunt, the crypto space is very deep, and even the most stable products are not 100% risk-free.
The use of sUSD is ridiculously simple! As long as you have USDC, you can exchange it for sUSD in minutes through the Solayer Emerald Card or the platform. The money deposited not only earns interest but can also be used directly for consumption! After binding to the Emerald Card, you can use it anywhere that supports Visa globally, online to buy bags, offline to buy groceries, deducting directly from your account without the hassle of exchanging for cash.