Crypto Exchange Okx said it offers a 4.1% return on USDG with weekly payments without staking lockups.
OKX said it was responding to increased competition for Stablecoin control, it was announced in an email Tuesday.
The USDG is minted by Stablecoin Issuer Paxos and supports the US dollar at 1:1.
OKX will join the Global Dollar Network in July, bringing USDG to land and offshore users, pitching it as “dollars that will pay you back” when quiet markets and traders park their idol funds.
Yields have become an important battlefield for Stablecoins, where Fiat-backed options such as USDC and USDG compete with distributed designs such as Dai, and with algorithmic models that are notorious for maintaining PEG.
In its announcement Tuesday, OKX described Stablecoins as “connective tissue of Crypto.”
Stablecoins, Crypto Tokens, are fixed at the value of traditional financial assets such as Fiat currency, and currently support much of the crypto economy, supporting payments, cross-border transfers and debt strategies.
Their importance lies in maintaining value consistent with Fiat currency. This means that users can hedge against more unstable crypto assets without removing funds entirely from the crypto ecosystem.
