RWA Stablecoin Market
The RWA Stablecoin Market on ZeroLend allows users to lend and borrow real-world-asset (RWA) backed stablecoins. These stablecoins are typically pegged to fiat currencies (e.g., USD) and backed by tokenized collateral—such as government bonds, cash equivalents, or other traditional financial instruments—held in reserve.
Key Characteristics
High Loan-to-Value (LTV) Ratios: RWA stablecoins often allow higher LTV ratios because they are backed by tangible assets.
Competitive Yield Opportunities: Users supplying RWA stablecoins can receive APYs based on market demand, as well as any partner rewards or incentives.
Reduced Volatility: Because they are pegged to real-world reserves, most RWA stablecoins are designed to maintain price stability (e.g., 1:1 to USD).
Supported Assets
Below is an illustrative list of RWA stablecoins in the market. Actual availability may vary over time:
USD Coin
USDC
Tether
USDT
ether.fi USD
eUSD
Staked USDe
USDe
Usual USD
USUD
USDO Liquid Bond
USDO++
USDS Stablecoin
USDS
ZAI Stablecoin
ZAI
YieldFi Stable Token
yUSD
Syrup USDC
Syrup USDC
PT Ethena sUSDe 27MAR2025
PT-sUSDe
The above list is static and needs manual updating. Always check our RWA Stablecoin Markets to confirm which stablecoins are currently supported.
Lending (Supplying) RWA Stablecoins
Navigate to the RWA Stablecoin Market
Go to https://app.zerolend.xyz and select “RWA Stablecoins Market” in the market dropdown.
Choose a Stablecoin
Review the available RWA stablecoins to see their supply APY and any additional reward icons (e.g., partner tokens, Zero Gravity Points).
Supply Your Tokens
Click “Details” to open the asset-specific page.
Enter the amount of the chosen stablecoin you want to supply.
Confirm the transaction via your connected wallet.
View Earned Rewards
Once supplied, track your APY in real-time within the ZeroLend interface.
Some assets may have extra incentives or rewards (e.g., from Merkle, Pendle PT, or $ZERO boosts).
Redeeming Your Supplied Tokens
At any time, you can withdraw supplied stablecoins by selecting “Withdraw” on the asset’s page.
Ensure any outstanding debts or other constraints (like lockup periods on partner tokens) have been addressed.
Borrowing RWA Stablecoins
Collateral Setup
Before borrowing, deposit a supported collateral asset (which can be a crypto token or another RWA stablecoin) into ZeroLend.
Review the health factor or collateral ratio associated with each asset.
Select an RWA Stablecoin to Borrow
In the RWA Stablecoins Market, click “Details” next to the stablecoin you wish to borrow.
The Borrow APY, maximum borrow limit, and any additional terms will be displayed.
Execute Borrow Transaction
Enter the desired borrow amount (up to your limit).
Confirm the transaction via your connected wallet.
Manage Your Position
Monitor the health factor to avoid liquidation if your collateral value fluctuates.
Repaying Borrowed Amount
Go to the same stablecoin’s “Details” page to repay the borrowed amount.
After repayment, your collateral is unlocked (assuming no other outstanding debts).
RWA Stablecoin Market Benefits
Stable Value
RWA stablecoins are designed to maintain value relative to real-world assets (often $1), helping to reduce volatility.
Diverse Backing
Assets may be backed by Treasuries, fiat, or a combination of yield-generating strategies, providing a variety of risk profiles.
Potential for Higher Yields
Certain RWA stablecoins integrate with yield protocols or partner reward systems, offering more competitive returns than standard stablecoins.
Flexible Borrowing Options
Higher LTV ratios may be possible if the stablecoin’s backing is considered lower risk, giving borrowers more flexibility than in crypto-only markets.
Risk Considerations
Collateral Liquidation: If the value of your collateral drops or if borrow APYs become unfavorable, a liquidation event may occur.
Backing Transparency: RWA stablecoins rely on verifiable real-world reserves. It is recommended to review the documentation of each stablecoin issuer to understand audits, reserve holdings, or redemption processes.
Smart Contract Vulnerabilities: All lending interactions involve smart contracts. While ZeroLend employs security audits, no system is entirely risk-free.
Getting Started
Connect Your Wallet
Use any supported wallet (e.g., MetaMask) at https://app.zerolend.xyz.
Review Market Details
Check the RWA Stablecoins Market for APYs, borrowing rates, and any active incentive programs.
Approve & Execute Transactions
When supplying or borrowing, grant approval for the stablecoin in your wallet, then finalize the transaction.
Manage Ongoing Positions
Periodically review your supply/borrow positions. Adjust based on updated APYs, collateral ratios, or market conditions.
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