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Dubai-based DWF Labs Unveils Details of Its Synthetic Stablecoin That will Be Launched by Q1 2025
After months of meticulous research, Dubai-based market maker and leading web3 investor DWF Labs has released details of its synthetic stablecoin. According to Andrei Grachev, the head of DWL Labs, its much anticipated synthetic stablecoins will be launched between the fourth quarter of 2024 and the first quarter of 2025.
The DWF Labs’ synthetic stablecoin will support a basket of digital assets, which will have different annual percentage yields (APY). The expected APY for investors who get to stake different stables, such as Tether’s USDT USDT $1.00 24h volatility: -0.2% Market cap: $119.16 B Vol. 24h: $46.45 B , will earn about 12 percent. The firm has set the APY for Bitcoin BTC $63 141 24h volatility: -0.9% Market cap: $1.25 T Vol. 24h: $22.11 B and Ethereum ETH $2 610 24h volatility: -2.2% Market cap: $314.17 B Vol. 24h: $16.48 B at about 15 percent.
In a bid to attract more altcoin investors, DWF has set the APY for blue chips and long-tail altcoins at around 17 percent and 19 percent respectively. Furthermore, the DWF Labs’ synthetic stablecoins will be highly interoperable between different chains for seamless redemption across various DeFi protocols.
Meanwhile, the DWF team continues to build to ensure a successful launch in the coming months. Moreover, the firm has already secured $500 million from its partners to build and launch the synthetic stablecoins.
Crystallizing product details for @DWFLabs synthetic stable coin:
Launch Q4 2024 – Q1 2025
Expected APY:
– Stables: ~12%
– BTC/ETH: ~15%
– Blue chips: ~17%
– Long Tail alts: ~19%
Omnichain mint / redeem
Whitelisted ~500m$ TVL commitments from our partners and friendsWe BUIDL
— Andrei Grachev (@ag_dwf) September 24, 2024
Importance of the Synthetic Stablecoin for DWF Labs
The DWF Labs has invested in dozens of crypto projects, which currently have a total market cap of over $50 billion and a daily average trading volume of about $3 billion. Some of the top-tier projects that DWF Labs has invested in include Toncoin TON $5.53 24h volatility: -3.3% Market cap: $14.01 B Vol. 24h: $242.87 M , Tron TRX $0.15 24h volatility: -0.6% Market cap: $13.16 B Vol. 24h: $278.35 M , and Mantle MNT $0.62 24h volatility: -2.0% Market cap: $2.04 B Vol. 24h: $95.04 M , among others.
The DWF Labs has also significantly invested in the meme coin industry including Floki FLOKI $0.0001 24h volatility: 3.6% Market cap: $1.35 B Vol. 24h: $285.91 M , Milady Meme Coin LADYS $0.0000 24h volatility: -1.7% Market cap: $83.26 M Vol. 24h: $4.13 M , and recently Neiro.
As a top-tier market maker, whereby the firm provides needed liquidity for promising altcoins, the launch of synthetic stablecoins will play a crucial role in the success of the respective projects.
Bigger Picture
Since the downfall of the Terra Luna (UST) in early 2022, which has never recovered to date, the adoption of synthetic stablecoins has significantly slowed down. Nonetheless, more web3 venture capitalists are pushing the boundaries of synthetic stablecoins development.
For instance, Dai DAI $1.00 24h volatility: -0.2% Market cap: $5.37 B Vol. 24h: $75.62 M has grown to a top-tier stablecoin, with a market cap of about $5.4 billion and a daily average traded volume of around $76 million.
The Cardano ADA $0.37 24h volatility: 3.6% Market cap: $13.23 B Vol. 24h: $363.05 M ecosystem has been working on the Djed (DJED) stablecoin, which currently has a market cap of about $4 million.
The biggest deal breaker of any stablecoin has been the freeze option, whereby some stablecoins have been criticized for enabling the feature at the expense of decentralization. As for synthetic stablecoins, they have a brighter future due to their lack of freeze options on their smart contracts.
Furthermore, anyone can mint and redeem the synthetic stablecoins, and unlock the centralized stablecoins such as USDC USDC $1.00 24h volatility: -0.1% Market cap: $35.93 B Vol. 24h: $5.73 B and USDT.
Dubai-based DWF Labs Unveils Details of Its Synthetic Stablecoin That will Be Launched by Q1 2025
