PYUSD On Solana

About two months ago, PYUSD launched on Solana, its first new chain since it initially launched on Ethereum a year ago. PYUSD is issued by Paxos, which is under the jurisdiction of NYDFS, so they are required to get approval for each new chain they launch on. The Solana rollout has been extremely interesting, both from an opportunistic standpoint, and from what it tells us about the Solana DeFi ecosystem. PYUSD on Ethereum took a year to get to 350m AUC, but the supply on Solana is already at 550m, taking PYUSD past 900m; PYUSD has increased in supply by 50% in August alone.

The primary driver for the increase is yield. PYUSD currently pays 15% on Kamino (which has 400m supplied) and 18% on Drift (which has 60m). The...