ABCDE: Why we invested in Perena

Author: Joysong_J; Source: ABCDE Capital

TLDR

The stablecoin market is growing at an astonishing rate, but it also faces the problems of centralization and decentralized liquidity;

Perena is systematically building key infrastructure for stablecoins to help stablecoins move from innovation in encryption technology to mainstream financial applications;

The Perena team has been deeply involved in stablecoins for many years and has first-class product capabilities and rich corporate resources;

Perena is committed to building a more usable, liquid and profitable stablecoin infrastructure to promote the large-scale popularization of stablecoin applications in the future.

Stablecoin Market

2024 can be said to be the year of the outbreak of stablecoins. According to DefiLlama, the total market value of stablecoins has exceeded $200 billion, with USDT hitting a record high of $139 billion, and the market value of USDC issued by Circle reaching $41 billion. The continued growth of the market is not accidental. We believe that there are two main driving forces behind this:

Institutional application scenarios of stablecoins, such as large-scale remittances and payments;

As a financial instrument that can generate income, stablecoins show unique value potential.

This trend makes us more convinced that stablecoins will play an increasingly important role in the future and also put higher demands on infrastructure.

Source: DefiLlama

Battle of Stablecoins: New Digital Currencies Are Rising

In fact, the prosperity of the stablecoin market has been brewing for many years. From BUSD (Binance Dollar), PYUSD (PayPal Dollar) to the recently launched RLUSD (Liquidity's yield-based stablecoin), more and more institutions are beginning to issue their own stablecoins. As mentioned above, stablecoins are not just simple payment currencies, they are becoming "new currencies in the digital world", injecting unprecedented liquidity into the crypto market.

But as more and more institutions issue different types of stablecoins, we see a clear liquidity split. We urgently need a strong infrastructure to support its exchange and provide liquidity.

"The biggest problem in the current stablecoin market is that we have many stablecoins, but there is no unified infrastructure to work together efficiently. Perena is filling the missing link." Perena co-founder Anna said.

Perena has built a powerful stablecoin platform to manage stablecoin liquidity, control risks and integrate new programmable currencies.

Numéraire: Perena's first product

In addition to the huge potential of the market, an important reason for us to invest in Perena is the team's strong execution. In just a few months, Perena launched its first product - Numéraire, a multi-asset stablecoin swap protocol. The core function of the platform is a multi-stablecoin liquidity pool, which further improves the capital efficiency and liquidity of the stablecoin market by integrating multiple stablecoins into a fungible and liquid token (such as USD*). USD* is essentially a LP token of a stable pool (which can also be used as a stablecoin itself). The stable pool consists of a basket of stablecoins, including Tether, Circle and PayPal USD in the AMM pool. Users can experience smooth stablecoin exchanges on Numéraire or become liquidity providers (LPs) to earn returns; for stablecoin issuers, a basket of stablecoin pools further solves the problem of stablecoin liquidity fragmentation in the market while reducing issuance risks.

This comprehensive and innovative design solves the current systemic problems of stablecoins and lays the foundation for the future trillion-dollar decentralized financial system.

Source: Perena Website

Team Introduction

The success of a product is inseparable from an excellent team. We believe that an excellent entrepreneur needs to have ambition, clear goals, and fast execution. Anna is undoubtedly the best candidate to develop stablecoin products. As a co-founder of Perena, Anna served as the head of stablecoins for Solana, helping to double the issuance of stablecoins on Solana to US$3.6 billion, while promoting the native issuance of a variety of non-US dollar stablecoins. Her industry experience and keen insight have earned her recognition from many heavyweight supporters, including Solana co-founders Anatoly Yakovenko and Raj Gokal. We believe that under her leadership, the Perena team will be able to promote continuous innovation in stablecoin infrastructure and lead the future development of the industry.

Written in the end

The regulatory environment in the United States will become clearer after Trump takes office, and traditional financial giants (such as Goldman Sachs) will also enter the market. The stablecoin market may double to $400 billion by 2025.

This not only proves the huge potential of the market, but also makes us more confident in Perena's future.

We firmly believe that 2025 will be the year for stablecoins to shine, and it will also be a new year for Perena to set sail and lead the trend.