Justin Sun Interview: stUSDT is leading the new narrative of the RWA track

On July 3, stUSDT, the first RWA product of the TRON ecosystem, was officially launched. On the first day of launch, its total pledge amount exceeded 22 million USDT. stUSDT is a platform for individual investors to invest in RWA products. The product bridges the gap between individual investors and institutional investment targets, and builds a bridge between the encrypted world and the real world. stUSDT currently takes government bonds as the main investment target, and the interest rate is anchored to the annualized yield of government bonds. The current expected annualized yield is about 5%.

Currently, the development of RWA is still in its early stages. But its potential is huge. For Tradfi, the biggest advantage of DeFi is that it enables users who have been rejected by traditional finance to participate in financial activities, and it reduces many third-party intermediate links such as user qualification assessment required by traditional finance. . For DeFi, RWA can expand the asset base of DeFi, make it cover more real-world assets, and provide it with sustainable, rich types, and real returns supported by traditional assets.

Now stUSDT, which has entered the game, is undoubtedly a strong competitor on the RWA track by virtue of the absolute advantage of USDT on the TRON network and almost no threshold product features. To this end, a reporter from Jinse Finance interviewed Justin Sun, the founder of TRON and member of Huobi’s Global Advisory Committee, and chatted with him about his thoughts on the RWA track, the product features of stUSDT, and future development plans. The following is the transcript of the interview:

**Jinjin Finance: Can you briefly introduce the product of stUSDT platform? **

**Sun Yuchen:**stUSDT platform is committed to building bridges between individual and institutional investors, the encrypted world and the real world through smart contracts, bridging the gap between individual investors and institutional investment targets, and providing A fairer RWA investment channel, introducing real-world assets into the TRON chain ecology through DeFi, is a pioneer in connecting RWA to the encryption field on the TRON network.

The stUSDT token is a decentralized certificate protocol that connects real-world assets. Users can participate in real-world investment and earn RWA passive income by holding stUSDT. stUSDT builds a decentralized investment strategy, asset management mechanism, investment determination and data disclosure strategy through smart contracts.

At present, stUSDT has been officially launched at 21:00 East Eight District Time on July 3. On the first day of launch, its total pledge amount has exceeded 22 million USDT.

The stUSDT platform provides a full set of friendly interactive interfaces, so that users can pledge to obtain stUSDT and unstake to obtain USDT. The smart contract will enable stUSDT holders to obtain benefits through the Rebase mechanism, and the number of stUSDT held by users will gradually increase. See Medium for details. The smart contract will always maintain a 1:1 exchange rate between stUSDT and USDT to ensure that users get benefits.

** Jinse Finance: Can you introduce the founding team members? **

**Justin Sun:**stUSDT’s founding team is composed of encryption practitioners with many years of experience and professionals in the investment field.

**Jinse Finance: What pain points do you think stUSDT platform has solved for current users investing in RWA track products? **

Sun Yuchen: This is reflected in the unique income mechanism of stUSDT. The income mechanism of stUSDT is that users can participate in real-world investment and obtain passive income related to RWA by holding stUSDT. The decentralized investment strategy and asset management mechanism built through smart contracts, as well as the definite investment and data disclosure strategy, ensure that stUSDT holders can obtain benefits through the Rebase mechanism and gradually increase the amount of stUSDT they hold. For details, see ** Medium**. At the same time, the smart contract always keeps stUSDT and USDT exchanged at a ratio of 1:1 to ensure that users get benefits.

Such a mechanism provides users with real asset participation opportunities, transparency and trust, and allows them to effectively manage and plan their own assets.

**Jinjin Finance: What is your overall judgment on the RWA track? For example, what stage has it developed now? What does RWA mean for Tradfi? What is the significance of Defi? For investors, what are the advantages of investing in RWA compared with investing in other track assets, and compared with traditional Defi products? **

****Justin Sun: ****The RWA track is still in its infancy as a whole, but it is also in its rapid development stage, and many projects are trying to introduce RWA into the chain. Traditional TradFi institutions such as Goldman Sachs, Hamilton Lane, Siemens, and KKR are all working hard to put their real-world assets on the chain. In addition, native encrypted DeFi protocols such as MakerDAO and Aave are also being adjusted to be compatible with RWA.

I think the biggest significance of RWA to TradFi is that it can help TradFi achieve wider asset coverage and provide investors with more diversified investment options. In addition, the long-term dependence of traditional finance on the intermediary system can also be changed, helping to reduce the operating costs of the platform while improving capital liquidity and efficiency.

For DeFi, RWA can expand DeFi's asset base to cover more real-world assets, and provide it with sustainable, rich types, and real returns supported by traditional assets. In addition, RWA can bridge the decentralized financial system and the traditional financial system for DeFi, which means that in addition to the virtual asset market, the massive liquidity, vast market opportunities and huge value capture of the traditional financial market can rely on RWA is imported into the DeFi market.

For investors, investing in RWA has the following advantages compared to investing in other track assets and traditional DeFi products:

1. Diversification: RWA provides investors with more diversified investment options. By converting various real assets into tokens, investors can more flexibly allocate their own asset portfolios while reducing the risk of investment portfolios.

2. Reduce costs: In the traditional financial market, asset transactions need to go through many intermediaries, approval processes, etc., resulting in long transaction times and high costs. RWA can simplify these processes and reduce transaction costs and time costs.

3. Inflation preservation and passive income: RWA usually has a better ability to resist inflation, because when inflation causes prices to rise, the value of tangible assets may also rise, and users can also participate in real-world investments through smart contracts to obtain certain passive income.

4. Profit potential: Since the RWA track is still in its infancy and rapid development stage, investing in this type of project is likely to bring higher profit potential.

**Jinse Finance: What are the competing products on the stUSDT platform? Compared with them, what are the advantages of stUSDT platform? **

**** Justin Sun: **** The on-chain bond platform Matrixdock launched by DeFi companies Ondo and Matrixport are all competitors of the stUSDT platform. Compared with these relatively mature platforms that have been developed for a period of time, the stUSDT platform The main advantages are as follows:

Decentralization: stUSDT is a decentralized platform based on TRON's smart contracts. Users can participate in real-world investments through smart contracts and earn RWA passive income through stUSDT.

Safe and efficient: stUSDT's smart contract adopts a safe and efficient rebase mechanism to ensure the user's investment security and income stability.

Transparent and fair: stUSDT provides a comprehensive data disclosure and asset management mechanism, ensuring the transparency and disclosure of investment information and providing users with fairer investment opportunities.

At the same time, one of the biggest advantages of stUSDT is its TRON-based ecosystem, which has extremely high efficiency, low transaction costs and a large stable currency circulation, which can better meet the investment needs of users, and the TRON ecosystem The system itself also has strong development and community support, and is expected to become one of the infrastructures for a wider range of decentralized financial applications in the future.

**Jinse Finance: What is your estimate of the average rate of return for users investing in stUSDT? How was this figure estimated? **

Justin Sun: At present, the expected annualized rate of return of this product is about 5%. During the period from July 10th to August 10th, the platform will also launch a welfare activity with an annualized rate of up to 10% after subsidies to help users get better return.

stUSDT currently takes government bonds as the main investment target, and the interest rate is anchored to the annualized yield of government bonds. It has the characteristics of depositing and withdrawing at any time, and has strong flexibility. stUSDT automatically updates the user's stUSDT token balance every day through the Rebase mechanism, allowing users to obtain stable income.