Holders of stUSDT redeemed about 37.7 million tokens on Tron and Ethereum on Friday, roughly 16 hours before the project said it would shut stUSDT and its wrapped version down, on-chain data shows. By the time the notice went out on Saturday, more than four-fifths of the supply that existed a week earlier had already been cashed in for USDT.
The stUSDT team said stUSDT and wstUSDT “will be discontinued,” with rebase rewards ending on Nov. 14 and a redemption window running until May 14, 2027. JustLend, the main lending market on Tron, followed with its own plan to offboard the wstUSDT market.
Two large exits on Friday afternoon
The biggest move came on Tron. At 14:26 UTC on Friday, a wallet that holds about 56 million TRX and dozens of other tokens sent 35.89 million stUSDT to a second address. That address handed the tokens to stUSDT’s unstaking contract, which burned them at 14:33 UTC. About 35.89 million USDT came back a minute and a half later, and the whole amount was sent on about a minute after that, first to an address created that day and then to a wallet that handles heavy daily USDT traffic.
That single redemption cut stUSDT’s supply on Tron from about 45.6 million to 9.7 million.
About 40 minutes earlier, an Ethereum wallet pulled its stUSDT out of a Curve pool and redeemed 1.81 million stUSDT. It claimed the matching 1.81 million USDT less than four minutes later and moved it out shortly after. Ethereum’s stUSDT supply is now about 18,700 tokens.
None of the wallets involved carries a public name tag on Tronscan or Blockscout, and nothing on-chain shows whether the Tron and Ethereum holders are connected. The wind-down notice does not mention the redemptions.
A week of heavy redemptions
Friday’s exits followed an earlier wave. On Nov. 7, six Tron addresses redeemed about 8.59 million stUSDT in the 14 minutes between 08:40 and 08:53 UTC, the contract’s burn records show. Before that burst, Tron’s stUSDT supply stood near 54.5 million.
Counting smaller redemptions, combined Tron and Ethereum supply fell from about 56.3 million to 9.5 million between Nov. 7 and the morning of the notice, a drop of 83%. DefiLlama shows the same picture, with stUSDT’s value locked falling from $56.2 million to $9.5 million over that week.
Holders who stayed have kept redeeming since the announcement. Three more Tron redemptions worth about 781,000 stUSDT went through on Saturday morning. Total supply across both chains was about 8.72 million when we checked on Saturday afternoon, with 8.70 million of it on Tron.
The rebase that paid holders their yield has also stopped. The contract’s last balance increase was recorded at 08:07 UTC on Friday, adding about $5,694 to a pool of roughly $45.6 million, or a rate a little under 5% a year. No increase has been recorded on Saturday.
What the wind-down means for holders
stUSDT went live in mid-2023 and is tracked by DefiLlama as a real-world-asset product, with most of its supply on Tron. It grew fast. DefiLlama data puts its peak at about $2.3 billion in November 2023, which makes the $8.7 million left today well under 1% of that high.
The exit process has two steps. Holders unstake through the official portal and then have to click “Claim” to receive USDT, the team said. The self-service portal closes after May 14, 2027. Requests after that date go through customer support and will be “processed in monthly batches through August 2027,” according to the notice. The team also warned that it will never message users first, ask for seed phrases or ask holders to send funds to redeem.
The JustLend part is small. Its wstUSDT market holds about $444,000, according to DefiLlama’s pool data, against more than $6.2 billion across the whole protocol. JustLend said supply and borrowing for the market will be disabled “soon,” after which existing positions can still be managed. A second phase will adjust market parameters to finish the wind-down, with details to follow. Users who supply wstUSDT are encouraged to withdraw, borrowers to repay, and anyone with positions in the related SBM-wstUSDT market to keep their accounts healthy.
JustLend has not said which parameters will change. If collateral settings are cut, borrowers who use wstUSDT as collateral would have less room before liquidation. Wind-downs can also leave thin, little-watched pools behind, as Kava Lend showed this week when its KAVA pool was drained partway through its own shutdown.
What to watch
The first thing to watch is how fast the remaining 8.7 million stUSDT is redeemed now that the yield has stopped. The second is the date and size of JustLend’s parameter changes for wstUSDT. The third is whether stUSDT says why it is shutting down and whether any large holders were told before Saturday’s notice. The project has not given a reason so far.
FAQ
When is the deadline to redeem stUSDT?
The self-service redemption portal stays open until May 14, 2027. After that, requests go through customer support and are handled in monthly batches through August 2027.
Do stUSDT holders still earn yield?
No. Rebase rewards ended on Nov. 14, 2026, and the contract has recorded no balance increase since Friday morning.
How much stUSDT is left?
About 8.72 million tokens across Tron and Ethereum as of Saturday afternoon, down from about 56 million a week earlier.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
