Hylo HYUSD

Hylo turns staked SOL into a dollar. Running on Solana, hyUSD is a crypto-backed stablecoin collateralized not by cash but by a basket of liquid staking tokens like JitoSOL and mSOL, held well above full backing, with the protocol targeting collateralization north of 160 percent. The clever part is a second token, xSOL, a leveraged long on SOL that soaks up the collateral's price swings so hyUSD can stay near a dollar without traditional liquidations. Because the underlying tokens earn Solana staking rewards, holders who stake hyUSD into sHYUSD capture that yield, which has run high. Redemption is an onchain arbitrage against the shared collateral pool through the protocol, permissionless and without a company desk. The mechanism is elegant but leans entirely on SOL and its staking market, so a sharp drop in that collateral is the main threat to the peg.