DWF Labs, a Dubai-based market creator and prominent web3 investor, has disclosed the specifics of its synthetic stablecoin following months of meticulous research.
The synthetic stablecoins eagerly anticipated by Andrei Grachev, the director of DWL Labs, are scheduled to be released between the fourth quarter of 2024 and the first quarter of 2025.
A portfolio of digital assets, each with a unique annual percentage yield (APY), will be supported by the synthetic stablecoin developed by DWF Labs.
The anticipated annual percentage yield (APY) for investors who stake various stables, including Tether’s USDT, is approximately 12 percent. The firm has established an annual percentage yield (APY) of approximately 15% for Bitcoin and Ethereum.
DWF has established the APY for blue chips and long-tail altcoins at approximately 17 percent and 19 percent, respectively, to attract more investors.
Additionally, the synthetic stablecoins developed by DWF Labs will be highly interoperable across various DeFi protocols, enabling seamless redemption across multiple chains.
In the interim, the DWF team is diligently constructing the necessary infrastructure to guarantee a successful launch in the months ahead. The organization has also secured $500 million from its partners to construct and introduce synthetic stablecoins.
A Broader Perspective
The adoption of synthetic stablecoins has experienced a substantial slowdown since the Terra Luna (UST) collapsed in early 2022, and it has not since recovered. However, more web3 venture capitalists are expanding the boundaries of synthetic stablecoin development.
For example, Dai has developed into a top-tier stablecoin, with a daily average traded volume of approximately $76 million and a market capitalization of approximately $5.4 billion.
Djed (DJED) is a stablecoin developed by the Cardano ecosystem and presently has a market capitalization of approximately $4 million.
The freeze option has been the most significant factor in the demise of any stablecoin. Critics have criticized certain stablecoins for enabling the feature at the expense of decentralization. Synthetic stablecoins have a more promising future due to their smart contracts’ absence of halt options.
Additionally, the synthetic stablecoins can be minted and redeemed by anyone, and the centralized stablecoins, such as USDC and USDT, can be unlocked.
