The sUSD token is backed by US Treasury bills, an asset considered low risk. Interest with sUSD works through the restaking modality. Solayer Labs is a re-staking protocol on the Solana network that launched a stablecoin, backed by real-world assets (RWA), that allows interest to be generated. Solayer works similar to a savings bank account, but without permissions or intermediaries. Called Solayer USD (sUSD), this stablecoin is backed by tokenized United States Treasury bills, and allows you to generate interest of 4.33% per year using the USDC cryptocurrency within the protocol. Interest with sUSD works through the restaking modality, which allows tokens to be deposited more than once in the same consensus layer to protect multiple applications and mechanisms. In other words, you can use assets that are already staked and put them on re-staking.
At the time of writing, the slot to participate in revenue with sUSD is full. If you still want to wait for your vacancy and participate, read this tutorial. To participate in this protocol and earn interest in RWA-backed stablecoins, the first thing you need is a cryptocurrency wallet that works in Solana. If you don't have one, you must create one. Preferably a Phantom wallet or a Solflare wallet. Solayer also allows you to use web3 wallets from exchanges such as Bybit or OKX wallet, and hardware wallets such as Ledger. Once you have your wallet ready, go to the website https://app.solayer.org/. Inside, you can connect your wallet in the upper right corner. This is what the connection permission request looks like within Solayer with a Phantom wallet:
The Phantom wallet is the most popular on the Solana network. Source: Phantom Wallet For some reason, and very tedious, by the way, accessing the functionalities of the Solayer app requires an invitation code. In the Solayer Discord community you can choose one, the one you prefer. Once the code has been entered, you now have access to restaking sUSD, which as reported by BitcoinDynamic, has an annual percentage return (APY) of 4.33%. This appears on the right side with the name USD Restaking, the USDC symbol and the label “Solayer Boost”. Remember that you will be able to deposit the Circle stablecoin and obtain sUSD with interest “through RWA partners”.
Solayer is a restaking platform. Source: https://app.solayer.org/ If you do not have the amount in your wallet that you want to place to generate interest, which It must be at least the equivalent of 5 dollars, It's time for you to send it to your wallet. Use your primary exchange to exchange fiat or your most used stablecoin for USDC. With the USDC in hand, send them over the network to the address of the Phantom wallet you are using. You can find this address in the header of the wallet:
Phantom, Ledger, and Solflare are three of several wallet options to connect to Solayer. Source: Phantom Wallet
Staking USDC
Once you enter “USD Resttaking”, you will see the window called “stake” where you can actually restake and generate interest with USDC using the funds you have in your Solana wallet.
The minimum to use USD Staking is USD 5. Source: Solayer As you have already connected it and transferred funds to it, your balance available to generate interest will appear in the Solayer window. So enter what you are willing to save on this DeFi platform, and click deposit, then accept the signature request in your wallet and complete the process.
Redeeming staked USDC with your interest
As the capacity to participate in the USDC restaking is full, it is not yet possible to observe how the exchange of USDC for sUSD happens and how this tokenized asset is hosted in the account within Solayer. However, the Solayer platform explains the following about the withdrawal of funds placed in savings with interest: “To withdraw, the user sends back sUSD to start the process. The protocol calculates and sends the corresponding wrapped Treasury bill to the qualified liquidity provider, who then completes the withdrawal by transferring the USDC back,” explains the Solayer FAQ. In other words, you can go to the window called “unstake” and obtain the USDC with their respective interests, equivalent to the term they lasted on deposit. The redemption process may take up to 1 business dayand funds can be withdrawn at any time. At the moment, sUSD backs assets with Treasury bills, considered low risk. However, it must be remembered that these assets are tokenized, and that the programs that issue, mint, and take them out of circulation may have errors. Other risks of staking on Solayer include market liquidity problems and changes in interest rates.
That said, counterparty risks are more minimized than in other markets. As reported by BitcoinDynamic, Solayer allows any user to create a quote and any qualified user to tokenize and provide RWA liquidity. This without the need for additional permissions.