What Is USDv?
USDv is a digital dollar from Solomon built on Solana. It is designed to track the value of the U.S. dollar while remaining easy to hold, send, trade, and use across supported crypto applications. USDv focuses on making the dollar productive for the individual holder. There is no need to lock tokens, convert them into a separate staking token, or deposit them into a vault.USDv is backed by USDG and USDC as its dollar-denominated reserve assets, with Solomon also working toward direct exposure to short-dated U.S. Treasuries.
How Does USDv Work?
USDv works like a normal stablecoin. You can hold it in a supported wallet, transfer it to another wallet, swap it, or use it in DeFi apps on Solana. To become eligible for rewards, users complete a one-time opt-in. After that, Solomon’s infrastructure can recognize eligible USDv balances and positions across supported wallets and integrations. After connecting the wallet below, I bought some USDv with USDC. It is as simple as that.
After the purchase, the estimated earnings in a year will be displayed. The amount used was $100, but the amount to be earned by each individual USDv holder is proportional to the current annual percentage yield (APY) and the amount of USDv held in the wallet.
Approve the next prompt to receive rewards in the wallet holding the stablecoin.
The Solomon app provides a quick avenue to make swapping easier for traders and holders. With this, one can also swap from USDv to USDC.
How Do USDv Rewards Work?
USDv rewards are supported by income generated from its reserve assets, including short-dated U.S. Treasuries. The Solomon app for USDv requires no manual claiming process. Once a user opts in and holds an eligible balance, the program calculates and routes rewards to holders every 14 days.
No Lockups or Staking
One of USDv’s main features is that users do not need to lock their funds to participate in eligible rewards. It is designed to remain liquid and transferable. Users can continue using it in supported wallets, apps, liquidity pools, and other integrations without turning it into a separate yield product.
Where Can You Use USDv?
USDv is designed for use across supported Solana wallets, DeFi protocols, liquidity pools, neobanks, custodians, and partner platforms. Users can acquire USDv through Solomon or other popular DeFi venues on Solana.
Stats Dashboard
Reserves
USDv is backed by a reserve portfolio of dollar-denominated assets. Solomon has also joined the Global Dollar Network, with USDG now accepted as collateral backing USDv. USDG is issued by Paxos entities operating under regulatory oversight in relevant jurisdictions. Adding USDG as collateral is intended to strengthen USDv’s reserve base and support liquidity and market operations.
Rewards
This page of the dashboard reflects all rewards that accrue to a wallet over time. Since I just purchased USDv, I am not eligible for any reward as of the time of writing.
Security
Because it prioritizes security, Solomon Labs has had its USDv smart contract programs audited multiple times by the Accretion and Zenith security companies.
Risks and Considerations
USDv is designed to track the U.S. dollar, but it may trade above or below $1 on secondary markets. Consider liquidity risk, reserve and counterparty risk, smart contract risk and even the risks of any third-party protocol where USDv is used. USDv is not a bank account, not a money market fund, and not protected by government deposit insurance.
Conclusion
USDv is Solomon’s attempt to make the on-chain dollar more useful. It combines the familiar utility of a liquid stablecoin with a reward system for holders to earn without staking and lockups. For Solana users, the goal is simple: hold and use a dollar-denominated asset as normal, while potentially earning through supported USDv balances and positions.
