RWA Protocol stUSDT Winds Down After $2.3B TVL Peak

Real-world asset (RWA) protocol stUSDT has begun winding down operations nearly three years after reaching a $2.3 billion total value locked (TVL) peak, according to Cointelegraph. The protocol ended interest accrual on Saturday and opened a six-month redemption window for tokenholders.

Redemption Window and Process

Holders of stUSDT and its wrapped version, wstUSDT, can redeem their tokens through the official portal until May 14, 2027. Requests submitted after the deadline will be handled through customer support in monthly batches through August 2027. The stUSDT team did not provide a reason for the shutdown but assured holders that all underlying assets remain fully backed. Holders with tokens on exchanges or DeFi platforms must transfer them to personal wallets prior to redeeming.

Ecosystem Impact

Launched in July 2023 on the Tron network, stUSDT allowed users to deposit USDT and earn yields from investments in real-world assets, including short-term government bonds, before expanding to Ethereum. According to DefiLlama data, the protocol's TVL peaked at about $2.3 billion in November 2023 before declining to roughly $8.6 million by Sunday. Alongside the shutdown, JustLend DAO announced it would phase out supply and borrowing functions for its wstUSDT market. Tether previously clarified in September 2023 that stUSDT is an independent project and is not affiliated with the stablecoin issuer.

Key facts

• stUSDT ended interest accrual on Saturday, initiating a redemption window lasting until May 14, 2027.
• The protocol's TVL reached a peak of approximately $2.3 billion in November 2023.
• JustLend DAO is phasing out supply and borrowing functions for the wstUSDT market.
• Tether previously stated it has no affiliation with the independent stUSDT project.