OKX has announced that PayPal’s USD-backed PYUSD stablecoin is set to be available for trading on its exchange starting today, October 3.
The platform informed that call auctions for PYUSD will take place from 11 A.M. to 12 P.M. UTC, with immediate spot trading access afterward. However, it’s important to note that withdrawals of this stablecoin won’t be possible until 10 A.M. UTC on October 4.
This move by OKX illustrates the increasing acceptance of PYUSD in recent months. Just this week, MoonPay also integrated PYUSD, enabling users in supported countries (excluding Canada) to purchase the stablecoin via all major payment methods.
Backed by US dollar deposits and short-term US Treasuries, PYUSD is designed to be redeemable for US dollars.
The stablecoin experienced substantial growth following its introduction on the Solana blockchain, which helped raise its market capitalization to over $1 billion in August. Nevertheless, as of now, its market cap has dipped to approximately $716 million.
Reasons Behind the Decline in PYUSD Supply
The recent decrease in PYUSD’s supply can be attributed to diminishing incentive programs for the digital asset on the Solana blockchain.
According to DeFiLlama data, the supply of PYUSD on Solana, which previously surpassed $660 million, has plummeted by over 50% to $314 million within the last month. Conversely, PYUSD’s presence on Ethereum has risen by 7%, reaching $377 million.
Tom Solport, a staunch supporter of Solana, indicated that the initial rewards for PYUSD were excessively high but were discontinued prematurely. He observed that the lucrative yields attracted numerous farmers; however, as returns significantly decreased, many users reverted to USDC.
Tom recommended that offering a stable 11% annual percentage yield (APY) over a 12-month term might have proved more viable and potentially fostered greater integration with centralized exchanges (CEXs).
He further elaborated:
“I guess their strategy for incentivizing was to motivate farmers to convert into PYUSD, driving large OTC orders and boosting market capitalization to negotiate with CEXs for integration. Perhaps they achieved this objective, hence the incentive campaign was structured as it was.”