Stablecoins are undoubtedly one of the few products that has gained true product market fit in crypto. Stablecoins are not only a form of programmable money but they enable practical, everyday use of digital currencies, providing a fast and accessible way to transfer and store value in a decentralized fashion. With the market capitalization of stablecoins at an all-time-high, we expect a continued acceleration with the emergence of new issuers like PayPal and Robinhood capturing market share. We also anticipate that Solana will continue to lead the way as one of the foremost settlement layers for stablecoin transactions, owing to its exceptional transaction speed, high throughput, and rapidly expanding ecosystem. This positions Solana as a superior platform for handling the increasing volume of stablecoin transactions efficiently.

The market size of stablecoins on the Solana has also been steadily increasing, with transaction volumes consistently surpassing $2 trillion over the past few months. USDC remains the dominant player, commanding approximately 70% of the market share. This substantial growth highlights significant opportunities for new stablecoin issuers like PayPal USD and USDS. 

As outlined in our defi thesis, we have a huge interest in protocols who are preparing for a stablecoin-dominated economy which involves addressing key challenges like streamlining stablecoin issuance, improving on/off-ramp accessibility, and managing fragmented liquidity across a growing number of stablecoins. 

Why Perena?

Perena is addressing critical challenges in the stablecoin ecosystem by focusing on liquidity, interoperability, and capital efficiency. The rapid growth of stablecoins has exposed a lack of infrastructure capable of handling the diversity of issuers and stablecoins. Perena aims to bridge this gap by building a platform that supports multiple stablecoins, enabling seamless interoperability and efficient cross-chain liquidity. Current systems for swapping stablecoins, such as traditional AMMs like Orca and Raydium, are inefficient and lack scalability especially when there is increasing diversity and trading volumes of stablecoins in the market. Perena seeks to solve this by creating a multi-stablecoin liquidity pool, Numéraire on Solana, to facilitate smoother and more effective swaps between a wide range of stablecoins. By consolidating various stablecoins into a fungible, liquid token (e.g., USD*), Perena enhances capital efficiency and liquidity in the stablecoin market. USD* is essentially a LP token (also functioning as a stablecoin by itself) of a stablepool consisting of a basket of stablecoins. For users, Perena serves as a seamless solution for swapping stablecoins with significantly lower fees, making everyday transactions and cross-platform interactions more accessible and cost-efficient. Liquidity providers benefit from enhanced earning potential through concentrated liquidity and automated reinvestment mechanisms, ensuring their capital is utilized effectively while maximizing returns. For stablecoin issuers, Perena simplifies the process of issuing new stablecoins by reducing capital requirements and offering easy integration options. This not only accelerates the onboarding of new stablecoins but also fosters a more robust and diverse ecosystem.

In the near future, Perena is also expanding their infrastructure stack to include Collateralized Debt Positions (CDPs) that has improved capital efficiency as it allows users to borrow against their yield bearing stableswap LP position. Traditional CDPs pioneered by MakerDAO, while effective, often result in locked collateral that remains underutilized. merging the principles of CDPs with stable swaps could significantly improve capital efficiency. By combining the liquidity of stableswaps with CDPs, users can achieve both leverage and yield opportunities in a more efficient and integrated system.

Additionally, Perena seeks to bridge the gap between crypto-native stablecoins and their usability in traditional finance, integrating stablecoins into real-world financial applications like payroll, rent payments, and small business transactions. Perena also addresses the inconsistencies in the regulatory landscape. Stablecoin issuers often face fragmented regulations and inconsistent treatment, even within the same jurisdiction. By leveraging trusted issuers and standardized frameworks, Perena aims to ensure a unified approach to liquidity and risk management. 

Ultimately, Perena envisions creating a next-generation infrastructure for stablecoins that is inclusive, efficient, and practical. By improving liquidity, interoperability, and usability, Perena aims to establish a robust and accessible stablecoin ecosystem that benefits both consumers and businesses while driving adoption in emerging and traditional markets alike.

The Perena team is led by Anna who pioneered the stablecoin sector at Solana Foundation. During her tenure, she played a crucial role in doubling the stablecoin issuance on Solana to 3.6 billion and launching non-USD stablecoins natively on the platform. Anna has worked closely with central bankers and regulators on stablecoin regulation, driven by her vision for a sustainable and scalable stablecoin infrastructure. With her first-hand experience in growing the stablecoin market on Solana and her visionary take on how stablecoin infrastructure should be built, we strongly believe that there is no one better to lead Perena in their next phase of growth.