yUSD

Introduction

YUSD is our flagship yield-bearing stablecoin, designed to provide users with stable returns while preserving the dollar-pegged value of their assets. It represents the perfect entry point for DeFi users seeking yield without exposure to volatile crypto assets.

yUSD implements our full ERC4626 standard with yield vesting, providing a smooth and predictable yield accrual mechanism. The token maintains a stable value while gradually incorporating yields, making it suitable for both short-term liquidity needs and long-term savings strategies.

Underlying Asset

yUSD's native underlying asset is USDC (USD Coin), a fully-backed stablecoin pegged to the US dollar. USDC is issued by Circle and is widely regarded as one of the most trusted stablecoins in the ecosystem, with regular attestations of its reserves. We selected USDC as our primary asset due to its strong regulatory compliance, wide adoption across DeFi protocols, and robust liquidity.

Yield Strategies

yUSD employs a diversified mix of market neutral strategies for yield generation. Current strategies include, but are not limited to:

  1. Buying & holding zero coupon bonds such as Pendle PT Tokens

  2. Vault depsoits such as in Morpho & Silo Vaults

  3. Private Credit vaults such as offered by Midas

The yield strategy allocation is actively managed to balance risk and return, with limits for each protocol to ensure diversification.

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