Dubai-based DWF Labs Unveils Details of Its Synthetic Stablecoin That will Be Launched by Q1 2025 | Coinspeaker

Dubai-based DWF Labs Unveils Details of Its Synthetic Stablecoin That will Be Launched by Q1 2025

Steve Muchoki By Steve Muchoki Julia Sakovich Edited by Julia Sakovich Updated 3 min read
Dubai-based DWF Labs Unveils Details of Its Synthetic Stablecoin That will Be Launched by Q1 2025
Photo: DWF Labs / Twitter

DWF Labs announced that it has already set aside $500M for its upcoming synthetic stablecoin, which will play a crucial role in its liquidity management strategy.

Key Notes

  • DWF Labs has a robust crypto portfolio that includes meme coins such as Floki and Neiro.
  • The upcoming synthetic stablecoin will compete with fiat-backed stablecoins such as USDC and USDT.

After months of meticulous research, Dubai-based market maker and leading web3 investor DWF Labs has released details of its synthetic stablecoin. According to Andrei Grachev, the head of DWL Labs, its much anticipated synthetic stablecoins will be launched between the fourth quarter of 2024 and the first quarter of 2025.

The DWF Labs’ synthetic stablecoin will support a basket of digital assets, which will have different annual percentage yields (APY). The expected APY for investors who get to stake different stables, such as Tether’s USDT USDT $1.00 24h volatility: 0.1% Market cap: $119.67 B Vol. 24h: $47.00 B , will earn about 12 percent. The firm has set the APY for Bitcoin BTC $62 019 24h volatility: 1.7% Market cap: $1.23 T Vol. 24h: $26.64 B and Ethereum ETH $2 415 24h volatility: 2.0% Market cap: $290.77 B Vol. 24h: $13.87 B at about 15 percent.

In a bid to attract more altcoin investors, DWF has set the APY for blue chips and long-tail altcoins at around 17 percent and 19 percent respectively. Furthermore, the DWF Labs’ synthetic stablecoins will be highly interoperable between different chains for seamless redemption across various DeFi protocols.

Meanwhile, the DWF team continues to build to ensure a successful launch in the coming months. Moreover, the firm has already secured $500 million from its partners to build and launch the synthetic stablecoins.

Importance of the Synthetic Stablecoin for DWF Labs

The DWF Labs has invested in dozens of crypto projects, which currently have a total market cap of over $50 billion and a daily average trading volume of about $3 billion. Some of the top-tier projects that DWF Labs has invested in include Toncoin TON $5.38 24h volatility: 0.1% Market cap: $13.65 B Vol. 24h: $192.56 M , Tron TRX $0.16 24h volatility: 0.8% Market cap: $13.46 B Vol. 24h: $366.70 M , and Mantle MNT $0.59 24h volatility: 3.3% Market cap: $1.93 B Vol. 24h: $69.26 M , among others.

The DWF Labs has also significantly invested in the meme coin industry including Floki FLOKI $0.0001 24h volatility: 5.9% Market cap: $1.33 B Vol. 24h: $304.42 M , Milady Meme Coin LADYS $0.0000 24h volatility: 3.0% Market cap: $68.41 M Vol. 24h: $3.95 M , and recently Neiro.

As a top-tier market maker, whereby the firm provides needed liquidity for promising altcoins, the launch of synthetic stablecoins will play a crucial role in the success of the respective projects.

Bigger Picture

Since the downfall of the Terra Luna (UST) in early 2022, which has never recovered to date, the adoption of synthetic stablecoins has significantly slowed down. Nonetheless, more web3 venture capitalists are pushing the boundaries of synthetic stablecoins development.

For instance, Dai DAI $1.00 24h volatility: 0.1% Market cap: $5.87 B Vol. 24h: $80.98 M has grown to a top-tier stablecoin, with a market cap of about $5.4 billion and a daily average traded volume of around $76 million.

The Cardano ADA $0.35 24h volatility: 1.6% Market cap: $12.60 B Vol. 24h: $262.03 M ecosystem has been working on the Djed (DJED) stablecoin, which currently has a market cap of about $4 million.

The biggest deal breaker of any stablecoin has been the freeze option, whereby some stablecoins have been criticized for enabling the feature at the expense of decentralization. As for synthetic stablecoins, they have a brighter future due to their lack of freeze options on their smart contracts.

Furthermore, anyone can mint and redeem the synthetic stablecoins, and unlock the centralized stablecoins such as USDC USDC $1.00 24h volatility: 0.0% Market cap: $35.50 B Vol. 24h: $7.33 B and USDT.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Steve Muchoki
Author Steve Muchoki

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