- Solana is now the dominant blockchain for PayPal’s PYUSD stablecoin.
- The double-digital yields offered to PYUSD holders across Solana DeFi has increased demand.
PayPal’s strategy of plying DeFi users with incentives is paying off.
The Solana version of the fintech giant’s PYUSD stablecoin just overtook its Ethereum counterpart, despite Ethereum’s 10-month head start.
More than $377 million worth of PYUSD now resides on Solana compared to $356 million on Ethereum, per DefiLlama data.
A winning strategy
Key to PYUSD’s success are the lucrative incentives offered to those using the dollar-pegged stablecoin in Solana DeFi protocols.
Each week, PayPal provides lending protocol Kamino and trading platform Drift with hundreds of thousands of dollars worth of PYUSD to distribute to users.
Depositing PYUSD on Drift earns users over 16% annually in kind, while Kamino offers users around 13%.
That’s significantly higher than the 3.5% yield…
