As Bitcoin and Ethereum nearing all time highs, attention is shifting toward yield markets across stablecoins, BTC, and liquid staking tokens. Stablecoin demand remains strong as institutions rotate into on-chain treasuries, while Powell’s warning of rising downside risks to employment signals the Fed may soon pivot from restrictive policy.
Together, this mix of macro easing signals and on-chain demand is setting the stage for stronger flows into yield opportunities across crypto markets.
Yield Updates
- Liquid Staking APYs:
- stETH Lido staked ETH 2.67% APY
- mETH Mantle staked ETH 2.67% APY
- AVAX Benqui staked AVAX 5.04% APY
- Stablecoin Yields: Morpho and Euler Vaults
- USDS on Re7 USDC Core Morpho Vault 30.01% APY
- USDT on Re7 USDT Core Morpho Vault 19.57% APY
- USDe on Euler Yield USDe 9.58% APY
Stablecoin Developments
Wyoming has launched the Frontier Stable Token (FRNT), a state issued, dollar backed crypto available on Avalanche and linked to Visa payments. The move makes Wyoming the first U.S. state to release a public stablecoin, sparking debate over its role alongside private issuers like Circle and Tether. Source
Paxos’ Global Dollar (USDG) has surged past $500M in circulation, nearly doubling since early August and marking a 1,700% rise this year. The stablecoin’s growth is tied to the Global Dollar Network, which shares revenue with partners and boosts adoption incentives. Source
MetaMask has announced its own native stablecoin, MetaMask USD ($mUSD), the first ever issued by a self custodial wallet. Developed in partnership with Bridge (a Stripe company) and M0, mUSD will be tightly integrated into the wallet ecosystem to support on ramps, swaps, bridging, and, later this year, spending via the MetaMask Card at millions of Mastercard merchants. Launching initially on Ethereum and Linea, mUSD is positioned to be a foundational liquidity asset for the growing Linea DeFi ecosystem. Source
Protocol Updates
Ethena has launched its Eligible Asset Framework for USDe, setting strict criteria (liquidity, open interest, maturity) for collateral in its perpetual futures backing. BNB has been approved as the first asset under this framework, with XRP and HYPE earmarked as candidates. The rule based validation brings transparency to USDe’s synthetic backing and signals potential additions like XRP and HYPE. Source
Puffer UniFi has officially launched its Testnet V2, marking a pivotal upgrade in its rollup technology. The update introduces Ethereum Appchains, replacing traditional smart contracts with app specific blockchains built atop Ethereum. By redefining the application layer, this approach is positioned to streamline DeFi development and scalability in Ethereum’s ecosystem. Source
Aave has launched on Aptos, its first ever deployment on a non EVM blockchain, expanding beyond Ethereum compatible networks. The move is part of Aave’s multichain strategy, designed to broaden its reach and tap into Aptos’ unique ecosystem. This deployment signals a new phase for Aave as it pushes into diverse blockchain environments. Source
The StarkNet community ratified SNIP-31, enabling Bitcoin staking on the network for consensus participation. Wrapped BTC variants including WBTC, LBTC, tBTC, and SolvBTC will now be supported in this staking model. Through this upgrade, BTC can account for up to 25% of StarkNet’s staking power, with the remainder held by STRK. Source
Governance
Benqi Liquid Staking Milestone. Its token $sAVAX now represents 15.66M AVAX staked (~$315M); partnered with Silo Finance to enable borrowing up to 95% LTV. Source
Morpho Vault v2 Launch and $10B+ Deposits brought enhanced yield aggregation and better lending efficiency. Source
Validator Updates
Meria has been added as a preferred validator for Polkadot staking to yield.xyz, expanding user options for secure and efficient delegation. This integration strengthens the validator set available to DOT stakers, offering greater flexibility and trust in network participation.
Figment is reported to have outpaced its rivals in ETH staking growth, signaling strong execution and scaling of its staking infrastructure. Source
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