DWF Labs to launch its synthetic stablecoin in Q1 2025

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

Crystallizing product details for @DWFLabs synthetic stable coin:
Launch Q4 2024 – Q1 2025
Expected APY:
– Stables: ~12%
– BTC/ETH: ~15%
– Blue chips: ~17%
– Long Tail Alternatives: ~19%
Omnichain coin / exchange
Commitments from our partners and friends of ~$500M whitelisted

We BUILD

— Andrei Grachev (@ag_dwf) September 24, 2024

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

The product will provide full chain production and redemption capabilities, the spokesperson said, adding that the product has secured approximately $500 million in total locked value (TVL) from its original partners and backers.

The latest announcement comes after Grachev said earlier this month that DWF Labs had finalized the design for its synthetic collateralized 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 increase market liquidity and enhance security through overcollateralization. After launch, DWF Labs’ stablecoin will compete with Tether’s USDT and Circle’s USDC, the two leading stablecoins in the digital asset market.

According to data from CoinGecko, USDT’s market cap exceeded $119 billion as of September 23, making it a dominant share of the stablecoin market.

In addition to DWS Labs, Ripple is also ramping up efforts towards the launch of its stablecoin, which is expected to happen within the next few months. Ripple’s stablecoin, dubbed Ripple USD (RLUSD), is currently undergoing beta testing on the XRP Ledger and Ethereum blockchains, pending regulatory approvals.

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

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