Somnia launches USDso, a Treasury-backed stablecoin routing 90% of yield into its DeFi ecosystem.

Somnia has introduced USDso, a new stablecoin issued by Frax Finance and backed by tokenized U.S. Treasuries and other cash-equivalent assets. USDso can be minted 1:1 against collateral like USDC and uses an over-collateralized model to ensure stability. The stablecoin’s reserve yield is primarily directed back into Somnia’s DeFi protocols to incentivize ecosystem growth, with 10% allocated to an insurance fund for risk management. Designed for high-frequency trading and DeFi use, USDso leverages Somnia's high-throughput Layer-1 network to support low-latency, low-fee transactions, positioning it as a key infrastructure asset bridging real-world asset yields into decentralized finance.