Messari: Understanding the new stablecoin project Perena on Solana

Note: On the evening of December 11, 2024, the latest news announced that Binance Labs has invested in Perena's core development team Quine Co., supporting the establishment of the first stablecoin infrastructure protocol on Solana.

Author: Mohamed Allam, Messari protocol analyst; Translated by: 0xjs@Golden Finance

Stablecoins are very important in the cryptocurrency space - in fact, they are the backbone of DeFi - but what about the infrastructure that supports them? It's a bit messy.

Although stablecoins are a powerful tool, especially for people in developing countries, allowing them to easily make cross-border remittances, the market is fragmented and inefficient.

Perena is intervening to change this situation by building infrastructure on Solana, aimed at unifying and optimizing the stablecoin ecosystem.

Why is Perena important for the development of stablecoins?

Unified Liquidity:

• Technical Description: Perena's Numéraire AMM integrates the liquidity of major stablecoins (such as USDC, USDT, PYUSD) into a central seed pool. This pool is tokenized as USD*, and its value appreciates with the increase in fees. The growth pool expands this liquidity by pairing USD* with new stablecoins, ensuring the concentration of liquidity across the entire market.
• In simple terms: Perena will not establish separate funding pools for each stablecoin but will create a large stablecoin pool to make transactions between them easier and cheaper. For new stablecoin projects, this is like joining a market that is already bustling, rather than starting from scratch.

Growth Available to Issuers:

• Technical Description: Growth pools allow stablecoin issuers to pair their assets with USD* rather than traditional assets like USDC. This approach reduces operational complexity and capital requirements while providing instant access to liquidity in the larger stablecoin ecosystem.
• In simple terms: For creators of new stablecoins, Perena makes it very easy for them to join the stablecoin game by providing instant access to a liquidity pool, without the need to invest a large amount of cash upfront.

Capital Efficiency:

• Technical Description: Numéraire utilizes bounded liquidity and smart swap routing to maximize capital efficiency. Centralized liquidity allows trades to be closer to the stablecoin peg, thereby reducing slippage and increasing fee generation for liquidity providers.
• In simple terms: Perena enables every dollar to work harder. Trading is cheaper and smoother for users, and those providing liquidity can achieve better returns without constantly adjusting their investments.

Currently, Perena is still in its early stages, but the cryptocurrency space is rapidly evolving. As the adoption rate of stablecoins continues to rise, such infrastructure will be crucial. They are building on Solana, leveraging its speed and low costs—ideal for the stablecoin market. The development of Perena is exciting, especially with rumors that it is about to announce fundraising news!

Source: DefiLlama (stablecoin market cap grows to nearly $200 billion high)