Odaily Planet Daily News: PayPal has reached a cooperation with the decentralized financial platform Spark, aiming to expand the on-chain liquidity of PayPal USD (PYUSD) from the current US$100 million to US$1 billion through decentralized financial lending.

PYUSD, issued by Paxos and pegged to the US dollar, has been integrated into SparkLend, Spark's lending marketplace. This integration allows users to provide and borrow PYUSD, with liquidity backed by Spark's $8 billion stablecoin reserve. Within weeks of its launch, PYUSD deposits on SparkLend have exceeded $100 million.

Phoenix Labs CEO Sam MacPherson said that predictable access to deep liquidity is key to the rapid expansion of stablecoins like PYUSD. This partnership model contrasts with traditional liquidity programs that rely on expensive market maker incentives, providing predictable depth by setting borrowing costs. (CoinDesk)