stUSDT, a yield-bearing token on the Tron network, is shutting down after reaching a total value locked of approximately $2.3 billion in November 2023. The team stopped reward accrual on November 14, 2026, and opened a redemption window for token holders. The protocol stated that all tokens remain fully backed.
How stUSDT Worked
stUSDT launched in 2023 as a receipt token for users who deposited USDT. The protocol generated yield from tokenized short-term government bonds and other real-world assets, commonly referred to as RWAs in the industry.
The token employed a rebase mechanism, where accrued interest was distributed as additional tokens rather than a price increase per coin. A non-rebasing wrapped version, wstUSDT, also launched in 2023 to better integrate with lending markets and liquidity pools.
Redemption Timeline and Process
Interest stopped accruing on November 14, 2026. Holders of both stUSDT and wstUSDT can redeem through the official portal until May 14, 2027, with no additional fees beyond standard network transaction costs.
After May 14, 2027, self-service redemptions close. Remaining requests will be processed on a monthly basis through August 2027.
Users holding tokens on third-party platforms such as JustLend or Curve must first move their tokens to self-custody wallets before redeeming. Wrapped wstUSDT requires unwrapping, and any staked positions must be unstaked prior to redemption.
Steep Decline in Total Value Locked
By mid-November 2026, stUSDT's total value locked had fallen to between $8.6 million and $9.5 million, representing a decline of more than 99% from its peak. TVL fell 80% on the single day rewards stopped, though the majority of the decline occurred over the preceding years.
Implications for Remaining Holders
The protocol team confirmed that underlying assets remain fully backed and redemptions will be processed in USDT. However, as withdrawals proceed, liquidity in secondary markets such as Curve may become constrained, potentially resulting in less favorable exit conditions for holders seeking to sell through those platforms rather than the official redemption portal.
