Why Is Solana Paying $580m to Fund Its Competitors?

1/ Solana generates $580m in annual interest revenue for Circle. Base captures 25% of USDC revenue for ecosystem growth.

Solana receives zero. But why?

A piece on infrastructure alignment and what we're building at @solsticefi to fix it.

https://x.com/solsticefi/status/1980254024352858360

2/ Circle and Tether hold stablecoin reserves in U.S. Treasury bills generating roughly 4% annually. Solana hosts $14.5b in USDC and USDT supply.

Value leaves Solana - $580m every year flows entirely off-chain to entities with no ecosystem alignment.

3/ Base negotiated revenue sharing with Circle. Roughly 25% of USDC revenue returns as liquidity incentives, developer grants, and infrastructure investments.

Every dollar in USDC on Base directly funds Base's growth against Solana.

Solana protocols optimize for assets that systematically extract value while subsidizing competitors.

4/ Solana money should fund Solana growth.

Solana needs two infrastructure layers operating with tight alignment.

1. Fiat-backed stables power payments and settlement.
2. Yield-bearing instruments power treasury management and capital efficiency.

5/ USX and YieldVault economics reverse the extraction model. Protocol revenue flows back into Flares rewards, ecosystem integrations, and liquidity programs.

Kamino, Raydium, Orca, Exponent users win - and most importantly, Solana wins.

The value generated by USX usage stays within Solana infrastructure instead of funding competitive chains.

6/ We built USX as native infrastructure for Solana's Internet Capital Markets. Optimized for instant finality and Solana roadmap.

Purpose-built for institutional operations moving billions daily across complex workflows.

https://x.com/solsticefi/status/1981299558778097985

7/ YieldVault provides the institutional fixed income layer.

Our strategy reported 16.2% trailing 12-month APY with 100% positive months across nearly 3 years before permissionless access.

Active delta-neutral infrastructure designed for capital efficiency.

https://x.com/solsticefi/status/1980635203300425965

8/ This complete stack matters.

1. USX provides the aligned payment layer institutions require for settlement.2
2. YieldVault provides the aligned yield layer institutions require for treasury management.

Both layers keep value circulating within the ecosystem as institutional capital scales.

For Solana, on Solana.

9/ Follow @solsticefi as we build aligned infrastructure for Internet Capital Markets on Solana.

Published 46

@WrecksGG

1/ Every week, there’s a new payments & tradfi giant entering crypto aiming the low-hanging fruit = stablecoins.

Your weekly stablecoin & yield news 🧵

2/ @solsticefi crossed $255m+ TVL with 23,000+ holders and we’re increasing SLX rewards supply to 8% for Flares campaign. Next milestone: $375m!

Users can farm variable yield with YT-eUSX at 15x multipliers or supply eUSX to Yield Markets at 10x.

https://x.com/solsticefi/status/1984300266116550978

3/ Tether reported over $10b profit through Q3 2025. Treasury holdings hit $135b, making it the 17th-largest holder of US debt globally.

That rivals Goldman Sachs and Morgan Stanley in annual earnings.

https://x.com/gandalfcryptto/status/1984328688251650119

4/ Coinbase and Citi partnered to build digital asset payment infrastructure for institutional clients.

Initial focus: fiat on/off-ramps and 24/7 stablecoin settlement across 94 markets.

https://x.com/coinbase/status/1982846056460386551

5/ JPMorgan completed its first blockchain-based private fund transaction using Kinexys Fund Flow. The system tokenizes investor records and automates capital flows.

Broader rollout planned for early 2026.

https://x.com/coinbureau/status/1983870315450204337

6/ Western Union announced USDPT stablecoin launching H1 2026 on Solana via Anchorage Digital. The token integrates with 550,000+ agent locations across 150+ countries for crypto-to-cash conversion.

https://x.com/solana_daily/status/1983460001554555321

7/ Revolut launched 1:1 USD to USDC/USDT conversions with zero fees or spreads. Users can convert up to $578k per 30-day period across six blockchains including Ethereum, Solana, and Tron.

https://x.com/linasbeliunas/status/1983925459579437152

8/ IQ and Frax launched KRWQ, the first Korean won stablecoin on Base. The token uses LayerZero's OFT standard for cross-chain transfers and went live with a KRWQ-USDC pair on Aerodrome.

https://x.com/Cointelegraph/status/1983843874683424885

9/ Etherfi enabled fiat transfers for its Cash product. Users can move traditional currency into and out of Cash accounts with a 10% seasonal reward boost for first-time bank transfers.

https://x.com/ether_fi/status/1983904926901104762

10/ Venmo now supports external PYUSD transfers to Ethereum wallets. Users can send PayPal's stablecoin directly from Venmo to any Ethereum address.

Network fees around $0.02 per transaction.

https://x.com/TheOneandOmsy/status/1984673431053340965

11/ Yield snapshot for the week:

• eUSX (Solstice): 3.43% APY
• sUSDf (Falcon): 8.88% APY
• SyrupUSDC (Maple): 6.13% APY
• sUSDe (Ethena): 4.82% APY
• sUSDS (Sky): 4.52% APY

12/ Hope this helps!

Follow and open notifications:

• @WrecksGG for weekly stablecoin & yield insights
• @solsticefi to catch up with Solana's baseline yield

Published 47