Somnia Launches Stablecoin USDso Backed by U.S. Treasury Assets

Somnia, a Layer 1 blockchain, has introduced its new stablecoin, USDso. According to ChainCatcher, this stablecoin is issued and operated by the decentralized stablecoin protocol Frax Finance, utilizing the frxUSD framework. USDso employs an over-collateralization model and is backed by assets such as U.S. Treasury bonds. It can be minted at a 1:1 ratio with assets like USDC. The revenue distribution mechanism of USDso ensures that 90% of reserve earnings are allocated to DeFi protocols, while 10% is directed to an insurance fund. The stablecoin is designed to cater to high-frequency trading, DeFi, and on-chain protocol scenarios.