Paxos’ USDG stablecoin has launched natively on Arbitrum One, marking the network's entry into the Global Dollar Network. Unlike traditional stablecoins where reserve income flows solely to issuers, this partnership allows the Arbitrum ecosystem to earn up to 100% of returns on reserves backing USDG held on-platform. With $3.79 billion in existing stablecoins on Arbitrum, this revenue will be reinvested to fund USDG growth and compensate integrating teams.
A comprehensive DeFi infrastructure is live at launch, with Fluid providing DEX liquidity, Morpho Labs operating lending vaults curated by Steakhouse and Gauntlet, and GMX building a dedicated GLV(USDG) vault. Additional integrations include Maple Finance’s syrupUSDG yield wrapper, Kraken for fiat ramps, and Stargate for cross-chain bridging via LayerZero, with Uniswap and Fhenix support following.
A new proposal asks ArbitrumDAO to designate USDG growth as a strategic objective and allocate 100 million ARB to the DRIP incentive program to support adoption. The governance proposal has been published but has not yet been voted on by the community.
Arbitrum Adopts Paxos USDG as Ecosystem Stablecoin to Capture Reserve Revenue
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