Resolv Labs secures $10M investment as yield-bearing stablecoins attract growing investor appetite, with the protocol poised to expand its yield sources and blockchain reach.
Stablecoins are ‘perfect rails for yield distribution,’ said Ivan Kozlov, founder and CEO of Resolv Labs. The protocol’s $10 million seed round, led by Cyber.Fund and Maven11, underscores the growing interest in stablecoin protocols that generate yield to token holders.
A stablecoin is a type of cryptocurrency that is pegged to a fiat currency, such as the US dollar.
It aims to reduce price volatility by maintaining a stable value relative to its underlying asset.
Stablecoins are often used for cross-border transactions and can be redeemed for their equivalent fiat value.
They typically use algorithms or collateralized reserves to maintain their stability.
Major issuers include Tether, USD Coin, and Binance USD.
The Rise of Yield-Bearing Stablecoins
A growing number of crypto protocols are offering yield-bearing stablecoins or ‘synthetic dollars,’ which wrap diverse investment strategies into a digital token with a stable price. These tokens pass on part of the earnings to holders, making them an attractive option for investors seeking predictable returns in an unpredictable market.
Stablecoin protocols are designed to maintain a stable value relative to a specific currency, such as the US dollar.
They use algorithms and reserve requirements to manage supply and demand, preventing price volatility.
Examples include Tether (USDT) and DAI, which are backed by collateral reserves.
Stablecoins are used for trading, lending, and payment settlement on blockchain networks.
Resolv’s USR token is a delta-neutral stablecoin designed to deliver stable yields from crypto markets while shielding holders from sharp price swings. The protocol achieves this by splitting risk between two layers, inspired by Kozlov’s background in structured products in traditional finance. USR stablecoin holders sit in the less risky senior tranche earning stable but lower yields, with risk-tolerant investors in the protocol’s insurance layer represented by the RLP token with floating price.
A Growing Market
The market for yield-bearing stablecoins is rapidly expanding, driven by growing investor interest. Ethena’s $5 billion USDe token, which primarily pursues a delta-neutral position, has become one of the most notable examples of this trend. Other protocols, such as Resolv Labs, are also gaining traction, with their total value locked (TVL) soaring to over $600 million following its launch in September 2024.
However, as markets turned bearish and yields compressed, Resolv’s TVL slid around $450 million this month. The new capital raise will help the protocol expand its yield sources to include bitcoin-based strategies and deepen its integrations with institutional digital asset managers. It also plans to expand to new blockchains, widening its reach beyond early crypto adopters.
A New Era for Stablecoins
The fundraising underscores the growing investor appetite for stablecoin protocols that generate yield to token holders. As the market continues to evolve, it will be interesting to see how Resolv Labs and other protocols navigate the challenges and opportunities ahead. With their focus on predictable yields and decentralization, these protocols have the potential to become a key player in the emerging world of yield-bearing stablecoins.
Yield-bearing stablecoins are a type of cryptocurrency designed to provide both price stability and interest earnings.
They combine the benefits of traditional stablecoins, such as price stability, with those of yield-generating assets, like bonds or savings accounts.
These coins typically earn interest through lending protocols or other financial instruments, allowing holders to generate passive income while maintaining the stability of their investment.
