Whenever I speak to people in the Solana eco-system, I ask them what they have heard about new projects. Perena is a protocol for stablecoin infrastructure that has been getting a lot of attention.
Perena was built with the idea that stablecoins would lose their utility if not liquid. It offers Solana-based liquidity pools and will offer asset-backed stablecoins in the future.
Anna Yuan was the founder of this project. During her two years with the Solana Foundation, she started its stablecoin branch. Yuan noticed that stablecoin issuing companies would issue a large number of tokens with limited integrations. Users were not able to take advantage of stablecoins.
She cited Ondo as an example — the tokenized US Treasury stablecoin has over $100 million in supply but only 3,500 holders, according to SolScan.
Yuan answered my question about a commonly-cited crypto claim, that the stablecoins had succeeded in finding product-market match or meeting the demands of an established market.
“I don’t agree,” Yuan stated that PMF is a result of liquidity, but most stablecoins don’t have enough liquidity to be used. She also added that real-world needs for money transfers and other things in emerging markets would help stablecoins. “get there.”
Perena is currently in closed beta, but the platform’s main feature will initially be a multi-stablecoin liquidity pool which uses a liquidity provider token called USD* that represents a piece of a seed pool containing Tether, Circle, and PayPal USD. The liquidity pool model, in simpler terms, should allow stablecoins to be issued more easily, as smaller coins will have access to the capital of the seed pool.
Yuan, who has deep connections in Solana, was able to access the active community of angel investors within this ecosystem. Yuan started raising funds on a Friday and already had about a dozen angel investors. Anatoly Yakovenko (co-founder of Solana) and Raj Gokal, who are also notable investors in the company, have both lent their support.
Yuan and myself talked about the potential for Solana to grow its stablecoins market cap. According to DeFiLlama, the network accounts for only 2% of stables.
Yuan’s answer was interesting: Solana PayFi can grow the economy by allowing people to take their salary in stablecoins. She said that 2,000 people take home their salary as stablecoins. This number is likely to grow.
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