Spark is collaborating with PayPal, and in the future, there will be a $1 billion injection of $PYUSD. Currently, Spark's strategy seems to rely on controlling the borrow interest rate to capture market share. The borrowing rate for PYUSD is only 2%, making it highly attractive for arbitrage or mining. The core of Spark's ability to suppress interest rates is the SLL mechanism, which controls billions of USDS. As long as this money is not exhausted, it can maintain a low borrowing rate. Taking PYUSD as an example, when the low interest rate attracts users to borrow, the borrowed PYUSD is generally exchanged for other stablecoins through DEXs like Curve. At this point, the amount of PYUSD is released into the market, and SLL can use the USDS on hand to inject liquidity into the pool to exchange for PYUSD, then reintroduce the PYUSD into the lending market, maintaining the peg while continuing to suppress the interest rate. Currently, this tactic can still be used for a long time,...
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