So, how exactly does @stbl_official work? And what's the difference between it and Tether or Circle? What about Ondo? First, you can think of STBL as a stablecoin project. It issues a stablecoin called $USST, and the pegged target value of this stablecoin is 1 U.S. dollar. However, the difference between USDC or USDT is that Tether and Circle mint USDC when they receive cash, effectively doubling the money supply. This is because cash and on-chain money are both created. Of course, Tether and Circle can't just freely spend this cash as collateral, but they can earn interest by investing it in short-term U.S. treasuries or deposits. They take this interest as profit. As the scale of this grows, stablecoin issuers can actually gain influence comparable to a country purchasing U.S. treasuries. The problem is that while users deposit cash and receive USDC/T in return, which they can use for various DeFi activities, they don't actually see or benefit from the interest that Tether or Circle earn. To address this, new stablecoins have started to emerge, one of which is Ondo's USDY. Built on RWA (Real World Assets), specifically short-term U.S. treasuries, USDY is not pegged to a fixed value of 1 U.S. dollar, but instead continuously appreciates in value. In other words, the value of USDY increases over time as interest accumulates. If I buy USDY today and just hold it, I can convert it back to cash in a year and receive the principal plus the interest. ➡️ So, what about STBL? First, STBL takes Ondo's USDY as collateral. For example, if you deposit 10 USDY now, you'll receive about 10.5 USST in return. This capital is then locked for at least 365 days. Of course, if liquidity forms in the market, you can sell USST directly in the market (but it doesn't seem to be well-formed yet). Additionally, a YLD NFT is issued to represent the interest. The USST I mint always aims to maintain a 1 U.S. dollar peg, while the interest generated through RWA is separately accumulated in the YLD NFT. The benefit of this is that USST can be used purely as a stablecoin, maintaining a 1 U.S. dollar peg, while the interest can be claimed separately when needed or even sold in the secondary market. ✅ Why is this good? The biggest drawback of tokens that generate value from minted stablecoins is that their value doesn't remain constant but instead increases over time. USDC/T always aims to maintain a 1 U.S. dollar peg, making them easy to use, but stablecoins that continuously appreciate in value require users to constantly check their current value. However, Tether and Circle do maintain a 1 U.S. dollar peg, but they don't automatically give users interest just for holding the stablecoin. STBL solves this by separating USST and YLD NFT. Since the assets deposited at the time of minting are interest-bearing assets like Ondo's USDY, interest is automatically generated in the background, and the compounding interest is separated out. It's a bit like looking at Yearn's YT and PT, but instead of tokenizing, it approaches the interest through NFTs. Because of this, it's unique in that it can't form a separate liquidity pool.