stUSDT, the Tron yield token that peaked at $2.3 billion, stops paying interest and gives holders until May 14, 2027 to redeem

The team behind stUSDT is shutting the protocol down. Interest stopped accruing on Saturday, November 14, and holders of stUSDT and its wrapped version, wstUSDT, can now redeem through the project's portal, Cointelegraph reported. The team gave no reason for the decision.

The portal stays open until May 14, 2027. After that, requests will be handled by customer support in monthly batches through August 2027. Tokens held on exchanges or in DeFi apps must first be moved to a personal wallet, and wstUSDT must be unwrapped before it can be redeemed, Startup Fortune reported. The team said all underlying assets "remain fully backed," according to Cointelegraph.

stUSDT launched on Tron in July 2023, letting users deposit USDT and earn yield from real-world assets, and later expanded to Ethereum. Tether said in September 2023 that it was not affiliated with the project.

The token's deposits peaked at about $2.3 billion in November 2023, according to DefiLlama. Around the time of the announcement only about $8.6 million was left, compared with roughly $60 million a year earlier. JustLend DAO, a Tron lending platform, says it will phase out supply and borrowing on its wstUSDT market as part of the transition.