PYUSD Supply on Solana Drops 50%

The supply of the PayPal stablecoin PYUSD on Solana has dropped from more than $660 million to about $320 million, a 50% drop in about a month, according to Blockworks. Currently, the supply of PYUSD on Ethereum stands at $377 million.

Kamino and other DeFi agreements have gradually reduced their once lucrative liquidity incentive programs, causing revenue farmers to look for better opportunities. PYUSD was issued by Paxos in an attempt to separate liquidity from the USDT- USDC stablecoin duopoly through a liquidity program with Trident Digital.

Trident Digital promotes a liquidity incentive program on several Solana DeFi platforms in an attempt to attract liquidity through higher yields.The supply of PYUSD on Solana peaked at $350 million with an annual yield of 18%, and is currently yielding 9.24% annually.

It is not clear whether these incentive funds come from PayPal or the Solana Foundation. pYUSD is primarily used for remittances and payments, not DeFi lending. Despite the recent drop in supply, this is still an important step into Solana for one of the world's largest fintech companies.