DWF Labs will launch its synthetic stablecoins by Q1 2025

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DWF Labs, a prominent crypto venture capital firm and market maker, is set to launch its synthetic stablecoins between Q4 2024 and Q1 2025, Andrei Grachev, Managing Partner at DWF Labs, said in a recent statement.

Crystallization of product details for @DWFLabs synthetic stablecoin:
Launch Q4 2024 – Q1 2025
Expected APY:
– Stables: ~12%
– BTC/ETH: ~15%
– Blue chips: ~17%
– Long tail: ~19%
Omnichain lie / redeem
Whitelisted ~$500m TVL commitments from our partners and friends

We BUILD

— Andrei Grachev (@ag_dwf) September 24, 2024

Grachev also revealed that the stablecoin is expected to offer an annual percentage return (APY) of 12%, with higher returns for BTC/ETH at 15%, blue-chips at 17% and low-liquidity altcoins at 19% .

The product will have full on-chain minting and redemption capabilities, he said, adding that it has secured about $500 million in total value locked (TVL) from initial partners and backers.

The latest announcement comes after Grachev said earlier this month that DWF Labs had finalized the design for its guaranteed synthetic stablecoin. The new stablecoin will support a variety of assets, including USDT, USDC, DAI, USDE, Bitcoin, Ethereum, and several blue chip and altcoins.

DWF aims to stimulate market liquidity and enhance safety through over-collateralisation. Once launched, DWF Labs’ stablecoins will compete with Tether’s USDT and Circle’s USDC, the two leading stablecoins in the digital asset market.

As of September 23, USDT’s market capitalization exceeded $119 billion, holding a dominant share of the stablecoin market, according to CoinGecko data.

Apart from DWS Labs, Ripple is also ramping up its efforts to launch its stablecoin, which is expected to happen in a few months. Ripple’s stablecoin, called Ripple USD (RLUSD), is currently in beta testing on the XRP Ledger and the Ethereum blockchain, pending regulatory approvals.

The initiative aims to improve liquidity and boost institutional use of the stablecoin while supporting cross-border payments.

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