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Interest accrual on stUSDT ended on Saturday, triggering the operational wind-down of the real-world asset protocol. The stUSDT team confirmed that the yield mechanism, which defined the platform since its launch, is no longer active. This move marks the final phase of a process that began nearly three years after the project reached its peak valuation.
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stUSDT launched in July 2023 on the Tron blockchain. It allowed users to deposit USDT to earn yields derived from investments in real-world assets, including short-term government bonds. The protocol later expanded its presence to the Ethereum blockchain before entering a prolonged period of decline from its peak valuation.
Redemption Process and Asset Backing
Tokenholders now have a defined timeframe to exit the protocol. A six-month redemption window is open for holders of both stUSDT and its wrapped version, wstUSDT. Users can redeem their assets through the official stUSDT portal until May 14, 2027. The stUSDT team stated that all underlying assets remain fully backed, a key assurance for investors managing the transition.
Requests submitted after the May 14, 2027 deadline will be handled through customer support in monthly batches through August 2027. Holders with tokens located on exchanges or DeFi platforms must transfer them to personal wallets before initiating a redemption. This procedural step ensures that assets are accessible for the final payout process.
The stUSDT team did not disclose a reason for the shutdown. reached out to the project for further information but did not receive a response before publication. The absence of a stated rationale leaves the strategic decision behind the wind-down unexplained, even as the operational steps for exiting the protocol have been clearly defined.
TVL Decline and Partner Adjustments
The shutdown occurs nearly three years after the protocol reached its maximum valuation. According to DefiLlama data, stUSDT’s total value locked (TVL) peaked at approximately $2.3 billion in November 2023. Since that peak, the TVL has declined substantially, reflecting a major outflow of assets over the past several years.
A year prior to the current announcement, the protocol’s TVL stood at roughly $60 million. By Sunday, the figure had dropped further to about $8.6 million. This steep decline indicates that many holders had already begun exiting the protocol in the months leading up to the formal wind-down announcement.
JustLend DAO, a DeFi platform that integrated with stUSDT, stated it would phase out supply and borrowing functions for its wstUSDT market as part of the transition. This coordination helps manage the liquidity implications of the shutdown across the ecosystem.
Despite its name, stUSDT is not affiliated with Tether, the issuer of the USDT stablecoin. In September 2023, Tether denied any affiliation with the protocol, describing it as an independent project. This distinction remains relevant as the protocol winds down, clarifying that the shutdown does not imply any operational issues or regulatory actions involving Tether itself.
