· 3 min read

Yield Week In Review: August 29, 2025

Yield Week In Review: August 29, 2025

Yield.xyz added new Morpho Vaults this week, expanding stablecoin yield coverage on Ethereum, Arbitrum, and Base. These new stablecoin vaults reach up to 11.2% APY on Morpho, giving builders more competitive opportunities to pass through to their users.

Broader DeFi markets also saw meaningful developments. Aave continues to attract institutional flows as it strengthens its position as a core liquidity venue, and Lombard Finance introduced yield-bearing Bitcoin (LBTC) to Solana, already crossing billions in TVL.

Let’s delve into these updates and more in our Yield Week In Review:

New Yields

Expanded support for Morpho was added to Yield.xyz this week, including new stablecoin vaults on Ethereum, Arbitrum, and Base:

New Morpho Vaults on Arbitrum:

New Morpho Vaults on Base:

New Morpho Vaults on Ethereum:

Yield Updates

Stablecoin Developments

USDT Goes Native on Bitcoin via RGB

Tether announced it will issue Tether (USDT) on the Bitcoin network using the RGB protocol. This allows stablecoins to live natively on Bitcoin, tapping into the network’s security while enabling fast, lightweight, and privacy-respecting asset transfers.

USDe Expands Supply and Collateral

Ethena’s USDe continues making gains, with supply surpassing $12 billion, now representing over 4% of the total stablecoin market cap. The protocol also unveiled an expanded collateral model, now backing USDe with BNB, XRP, and HYPE approved as candidates for future collateral assets.

Protocol Updates

cbBTC Surpasses $2 Billion on Morpho

cbBTC deposits on Morpho have now exceeded $2 billion, representing more than one-third of cbBTC’s total market cap. The milestone highlights how quickly tokenized Bitcoin has been adopted in DeFi, with Morpho serving as a core venue for its yield opportunities. Deep liquidity and growing demand suggest cbBTC will remain a key driver of BTC integration into money markets.

Seamless Leverage Tokens Expand to Ethereum Mainnet

Seamless Protocol is bringing its Leverage Tokens to Ethereum Mainnet after rapid adoption on Base. The product simplifies leveraged strategies by automating position management and tokenizing exposure, a design that resonated with users and helped Seamless become the second-largest ETH borrow market on Morpho Base within weeks. Mainnet unlocks greater liquidity, partners, and infrastructure, setting the stage for broader scalability and product-market fit.

Lombard Finance brings LBTC, yield-bearing BTC, to Solana

Lombard launched LBTC on Solana, a 1:1 Bitcoin-backed token with native yield. DeFi ecosystem adoption is strong, with integrations spanning Jupiter, Drift, Kamino, and Meteora. LBTC surpassed $8 billion in TVL within 92 days, marking a significant step in bridging legacy crypto assets and modern DeFi.

Aave launches Horizon—bridging RWAs with DeFi for institutions

Aave Labs rolled out Horizon, a permissioned-institutional platform enabling borrowing of stablecoins (USDC, RLUSD, GHO) against tokenized real-world assets, including U.S. Treasuries and CLOs. The model embeds compliance at the token level, while maintaining open lending pools for yield providers.

Validator Updates

P2P.org Surpasses 100M DOT Staked

P2P.org has crossed 100 million DOT staked, with a major contribution from Matrixport staking an additional 10 million DOT. This milestone underscores P2P’s position as one of the leading validators on Polkadot, highlighting continued institutional demand for staking exposure in the network.

Chorus One & Delphi Digital Launch Institutional Solana Validator

Chorus One announced a partnership with Delphi Digital to launch an institutional-grade validator on Solana. By combining Delphi’s research and protocol expertise with Chorus One’s ISO-certified infrastructure, the collaboration strengthens institutional confidence in Solana staking.

Build With Yield.xyz Today

That’s it for this week’s deep dive. At Yield.xyz, we’re building infrastructure so teams can offer yield confidently—across assets, chains, and strategies—without investing months of developer resources. Want to integrate thousands of yield opportunities into your product? Let’s get in touch.

Start building → yield.xyz