Why PayPal’s stablecoin soared to $569 million on Solana – DL News

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DG, Tim here.

Here’s what caught my attention in DeFi recently:

• Why PayPal’s stablecoin supply increased by $569 million in the past month.
• Polygon Moves From Starbucks Partnerships to Degens.
• How a whitehat hacker helped recover $450 million.

PYUSD yields soar

PayPal is making another big push to promote its dollar-pegged stablecoin, PYUSD.

It partnered with Solana lending marketplace Kamino to subsidize the yield of its PYUSD stablecoin and attract DeFi users.

Kamino users receive 17% per annum on their PYUSD deposits. Circle’s USDC, Solana’s largest stablecoin, yields around 9%.

PayPal’s tactic is paying off. The amount of PYUSD currency in circulation has increased by 96% over the past month, reaching $569 million.

But the incentives can’t last forever. PayPal hopes that DeFi users will continue to use PYUSD even after yields return to normal.

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This is not the first time PayPal has used incentives to attract users to PYUSD.

In January, the payment provider began using so-called bribes to increase PYUSD liquidity on decentralized trading protocol Curve Finance.

Disclaimer: Both DL News co-founders were previously core contributors to the Curve protocol.

Polygonal courts degenerate

Polygon has decided to stop seeking high-profile partnerships.

Instead, he wants to turn the network into a home for “someone who wants to get into Web3 protocols and have fun, even if they lose money.”

In other words, degenerates.

Polygon CEO Marc Boiron and the network’s founders are the architects of change.

Polygon’s previous partnerships, which included Starbucks and online forum Reddit, were meant to attract users.

But that did not work.

“We assumed too early that they would create a chain business today,” Boiron said of corporate brands.

Inside the War Room

When a DeFi protocol gets hacked, it’s all hands on deck.

Behind closed doors, teams of crypto security experts form online war rooms – places to share information and figure out the best way to recover stolen assets.

Ogle, a pseudonymous whitehat hacker, is a regular in these war rooms.

It was his negotiating tactics that helped recover $450 million from more than 40 different hacks.

“I’ve come a long way and I’ve dealt with some very difficult people, some very big egos,” he said. DL News in an interview.

Negotiating with hackers is not an easy task, unsurprisingly.

Chances are they won’t be interested in talking to representatives of the projects they just mined. And even if they do, it can often be a waste of time.

When cryptocurrency exchange KyberSwap lost $48 million Following an exploit in December, the hacker responded to negotiations by demanding control of the protocol, its founding company and all of its assets, in exchange for the return of user funds.

Still, Ogle said negotiating is better than doing nothing, which is usually the harsh reality after a hack.

Data of the week

PayPal launched its stablecoin PYUSD on Solana on May 29.

Just over a month later, PYUSD on Solana represents over 32% of all PYUSD in circulation.

PYUSD is growing faster on Solana than on Ethereum. (DefiLlama)

This Week in DeFi Governance

VOTE: GMX to Create Marketplaces for PEPE, SHIB and WIF Memecoins

VOTE: Arbitrum DAO to approve pilot phase of enterprise initiative

VOTE: MakerDAO Sends 219,125 DAI to Aave as Part of Spark Revenue Share Agreement

Article of the week

After nearly a month of selling, the German government has finally liquidated 50,000 Bitcoins seized from movie piracy site Movie2k.to in January.

What we are looking at

Marc Andreessen gave $50,000 in Bitcoin to an artificial intelligence agent.

Now he wants to use the funds to launch a memecoin.

Got any DeFi tips? Contact us at tim@dlnews.com.

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