A new force in the stablecoin race, how does Perena participate?

Written by: shaofaye123, Foresight News

Stablecoins, as one of the core infrastructures of decentralized finance (DeFi), have always attracted attention.

On December 11, Binance Labs announced an investment in Perena's core development team, Quine Co., to support the establishment of the first stablecoin infrastructure protocol on Solana.

As a core player in the stablecoin race, Tether made a profit of $5.2 billion in the first half of this year, with over $30 million in daily earnings. Despite the previous Luna crash, many projects continue to persist in building in the stablecoin space.

Recently, ENA returned to 1 U, Usual saw a weekly increase of nearly 60%, and ANZ surged 3 times in one day. Stablecoins across chains are continuously evolving. This article will give you a quick overview of the project - Perena, which has been favored by major VCs since its early days.

What is Perena

The current stablecoin market has a funding scale of $200 billion, and the number of new stablecoins is increasing. Issues such as stablecoin fragmentation, isolated liquidity pools, and user experience concerns are becoming increasingly apparent. Perena is dedicated to solving these problems; as the infrastructure of the stablecoin race, it does not compete with USDC, PYUSD, etc., but instead provides more efficient and convenient trading for them.

Perena primarily provides an efficient and flexible multi-asset stablecoin exchange platform for the Solana ecosystem, aiming to create a borderless monetary infrastructure. Since Binance announced its investment, the TVL has rapidly grown to nearly $1 million.

The Perena team is quite strong. Perena's founder, Anna Yuan, was the stablecoin lead at the Solana Foundation, where she significantly contributed to the increase in stablecoin issuance on Solana and the launch of non-USD stablecoins, doubling the stablecoin issuance to 3.6 billion. The team also includes professionals from institutions like Jump Trading. Furthermore, the team has achieved cooperation with central bank governors and regulatory bodies regarding stablecoin regulation.

In terms of financing, Perena has not only received support from well-known investors such as Solana co-founders Anatoly Yakovenko and Raj Gokal, but also garnered interest from numerous institutions, having completed a Pre-Seed round of financing led by Borderless, with investors including Binance Labs, Primitive Crypto, Anagram, Temporal, ABCDE Labs, SevenX Ventures, etc., raising approximately $3 million. Additionally, Perena has formed partnerships with several DeFi protocols.

How Numéraire operates

Perena has launched its first product - Numéraire. Numéraire is a multi-asset stablecoin exchange system that introduces the concept of USD*. It utilizes an AMM mechanism to achieve seamless creation and exchange of stablecoins while optimizing liquidity and efficiency across various markets. It addresses the fragmentation issue in the stablecoin ecosystem and lowers the capital requirements for new stablecoin issuance. Users can mint stablecoins through the protocol, gain tokenized returns from real-world assets, and customize risk-return configurations using a layered collateral debt position system. However, although Numéraire claims to be a cheaper and more efficient stablecoin exchange, it currently suffers from liquidity issues, resulting in higher slippage compared to platforms like Raydium.

USD* is the core element of the Numéraire system. It is a tradable LP (liquidity provider) token that also offers potential returns for holders. Through the concept of USD*, Numéraire not only achieves higher capital efficiency but also offers greater flexibility. All stablecoins share the same liquidity pool, reducing capital fragmentation. The lending function will allow excess stablecoins to be lent, further improving capital utilization. Additionally, adding stablecoins only requires establishing a relationship with USD* to exchange with all other stablecoins in the system. USD* serves as an intermediary unit, helping to achieve more accurate price discovery and reflecting the real-time valuation of various stablecoins in the market.

Numéraire provides an efficient and flexible multi-asset stablecoin exchange platform for the Solana ecosystem through USD*. It not only simplifies the user experience but also offers a more efficient liquidity management solution for the DeFi ecosystem, with advantages including:

  • Integrating dispersed liquidity between different stablecoins

  • Achieving efficient price discovery and settlement mechanisms

  • Providing risk-return opportunities

  • Expanding scale to meet institutional adoption and real-world needs

How to participate

Currently, the project is still in its early stages, only opening two functions: Swap and Pool. By trading between stablecoins and forming LPs, users can earn petal points. The Swap pool can be accessed without an invitation code, while the Pool requires a referral code or a points balance of 700 to open. Referrers can earn 5% of the points gained by the referred users. When 700 points are reached, 4 invitation codes can be generated, and for every additional 1000 points, 2 more invitation codes can be earned. Using a referral code during registration will grant both the user and the referrer 100 petal points each. The Pool function is permanently open once accessed. Currently, trading supports 7 stablecoins, including USDC, PYUSD, sUSD, etc.

Daily points acquisition method:

Swap:

  • A maximum of 500 points can be earned daily through trading. Up to 10 trades are allowed each day, with a value of $1 equal to 0.1 points, and a maximum of 50 points can be earned per trade (a trading amount of 500 U can earn the maximum points).

Pool: (currently no points limit, larger amounts yield more petal points)

  • Seed Pool: 10 petal/$/day

  • Growth Pool: 20 petal/$/day

USD*: 100 petal/day (balance greater than $100)

Other LP tokens: 100 petal/day (balance greater than $100) e.g., sUSD-USD* LP, USDS-USD* LP

Perena has a beautiful vision and a luxurious investment background. However, as an on-chain stablecoin exchange platform, it remains questionable whether this demand truly exists. Currently, trading stablecoins on centralized exchanges is still fee-free, which may pose a greater challenge for on-chain trading platforms like Raydium. Perhaps only when on-chain funds continue to flow in, and on-chain applications flourish, or when they truly integrate with real-world assets (such as payroll issuance), can Perena play a more significant role.