A new DeFi protocol just caught my attention - it's building some interesting mechanics around stablecoin minting and leveraged exposure.

The protocol mints a stablecoin called hyUSD, which is backed by liquid staking tokens like JitoSOL. But here's where it gets spicy: they also offer xSOL, giving users up to 4x leveraged exposure to SOL without the traditional liquidation risks that usually come with leverage.

The revenue model funnels LST staking yields and protocol fees into a stability pool, where sHYUSD holders earn rewards. It's basically combining stablecoin infrastructure with leveraged trading and yield optimization in one ecosystem.

Another player entering the Solana DeFi arena with a fresh take on capital efficiency. Worth keeping an eye on how this plays out.

SOL-6.89%

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rugpull_ptsd

· 3h ago

Another newcomer in the Decentralized Finance space on Solana, 4x leverage with no liquidation? Sounds great, but whether the real situation can withstand market testing is another story.

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ApeWithAPlan