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PayPal’s PYUSD stablecoin may be supported by Aave
Since its launch in August 2023, the PYUSD stablecoin by global electronic payments giant PayPal has had difficulty finding its place in the cryptocurrency market. This has pushed the issuer, Paxos, to make adjustments to improve the stablecoin’s current situation.
According to data from CoinMarketCap, the total supply of PYUSD at the time of writing was 273 million USD, an increase of 6 times compared to 44 million USD when it was first launched. However, it has not yet reached the total supply of tens of billions of USD of USDT, USDC or DAI. PYUSD’s 24-hour trading volume is only 20.4 million USD, too low for a stablecoin expected to be used on a large scale.
Total supply and parameters of stablecoin PYUSD as of 02:00 AM on January 9, 2024 (UTC)
Therefore, in Paxos’s moves to increase the adoption of PYUSD, the company has expanded into the DeFi sector. After creating the pool on Curve in late December 2023, Paxos is now working to bring PayPal’s stablecoin to the Aave lending protocol.
Aave is currently organizing to collect comments from the community on supporting PYUSD, with the voting deadline being January 11. If approved, Aave will officially turn this proposal into an official proposal for the community to review again.
Proposal to consult the Aave community on implementing lending for PYUSD
The issuer believes that being accepted by Curve and Aave will create a new momentum for PYUSD, giving DeFi investors more incentive to borrow stablecoins from Aave and participate in depositing interest on Curve. Paxos and its proposed partner, Trident, plan to provide $5-10 million in liquidity to PYUSD if it receives support from Aave.
Related: PayPal Embraces Blockchain as Finance’s New Frontier for Innovative Payments
However, there are still many people who question the actual applicability of PYUSD. When announcing the stablecoin, PayPal “hidden” about the ability to use PYUSD for payments on the company’s application, but so far there is no specific information about this. PayPal then put PYUSD on some CEX exchanges such as Coinbase, Kraken, Bybit, Cooperative (Huobi), but the level of acceptance is still not high.
