Summary
Onchain yield markets showed their resilience this week as capital remained protected during market volalility. Regulated stablecoins and yield-bearing dollar assets remain the foundation of DeFi’s fixed-income layer, while lending protocols and staking providers introduced new mechanisms designed to improve capital efficiency and risk management during volatile market conditions.
Across stablecoins, growth in USDC, USDS, USDe, and Maple-issued assets reflects sustained demand for predictable yield sourced from lending markets and real-world asset strategies. Meanwhile, lending venues and staking infrastructure providers are expanding capacity through vault-based architectures and deeper integrations with centralized platforms.
As the yield stack standardizes, builders increasingly rely on modular infrastructure rather than single integrations. Lending vaults, liquid staking primitives, and crosschain capital routing continue to define how yield products are built — a shift that infrastructure providers like Yield.xyz are accelerating by giving applications unified access to yield across networks.
Stablecoin Developments
Circle (USDC): USDC remains one of the primary sources of stablecoin yield across DeFi lending markets. Maple’s syrupUSDC strategy continues to see strong adoption, now holding approximately $2.4B in deposits generating around 5% APY. The Fluid USDC vault offers roughly 4.4% APY across more than $300M in deposits, while Aave’s USDC markets maintain steady utilization with approximately $900M deposited at around 3% APY.
Sky Ecosystem (USDS): USDS supply surpassed $9B, driven largely by continued demand for the Sky Savings Rate, currently offering 4% APY. Pendle expanded the USDS yield stack by launching a lending vault for stUSDS, enabling borrowers to post SKY as collateral while lenders capture double-digit yields through structured lending markets.
Ethena: USDe usage remained strong across lending and fixed-income venues. Pendle’s previous USDe markets expired this week and were replaced by new markets with May expiries. On Ethereum mainnet, sUSDe maintains large capacity on Aave at $880M. On Plasma, Pendle’s USDe market offers yields above 5% APY with approximately $570M in capacity. Newly launched Pendle markets on Ethereum introduced an additional $145M in capacity, signaling continued demand for fixed-rate stablecoin strategies.
Maple Finance: Maple’s yield-bearing stablecoin assets continue expanding across lending venues. Deposits of Maple assets on Aave surpassed $750M, demonstrating how tokenized credit strategies are increasingly used as productive collateral. On Base, Maple’s initial $100M deposit cap on Aave was filled this week, prompting an increase to $200M. The expansion reflects continued demand for credit-backed stablecoin yield in lending markets.
Protocol Developments
Morpho: Morpho continued scaling through its “DeFi Mullet” distribution model, with centralized platforms routing capital into onchain lending vaults. More than $1B in loans and $2B in deposits have now been routed to Morpho via Coinbase, pushing total TVL above $5.7B and placing the protocol among the largest lending venues in DeFi. Stablecoin lending markets remain near 5% APY across top vaults, while ETH lending markets continue to offer roughly 3% APY across widely adopted strategies.
Lido: Lido V3 launched this week, introducing stVaults, a new vault framework built on top of stETH. These staking vaults enable custom staking configurations, including APR-optimized strategies, institutional validator setups, and white-label staking products. The release expands liquid staking infrastructure from a single token model into a configurable vault-based staking layer.
Euler: Euler’s liquidation system demonstrated strong performance during recent volatility. Borrowers retained more than 98% of collateral value during liquidations, with $1.14M processed, $1.12M of debt repaid, and less than $20.7K distributed as liquidator rewards. The average liquidation bonus remained below 1.81%. Stablecoin lending markets on Euler continue to offer attractive yields, including more than 7% APY on PYUSD and RLUSD markets.
Fluid: Market volatility returned over the week, triggering liquidations across lending protocols. Fluid reported zero bad debt during the period, supported by higher liquidation thresholds and partial liquidation mechanics designed to reduce borrower losses during stress events. The protocol’s risk controls functioned as intended despite increased market activity.
Drift: Drift processed $12.1M in liquidations this week, bringing total liquidations over the past several days to $15.2M. At peak volatility, 3,027 users faced liquidation events that were managed through partial liquidations, reducing exposure without fully closing positions. No socialized losses occurred. Increased trading activity also drove higher utilization in Drift lending vaults, with SOL lending yields reaching up to 10% APY.
Build With Yield.xyz Today
This week’s developments reinforce a broader trend: yield infrastructure is converging around lending vaults, liquid staking systems, and stablecoin liquidity layers that can operate across multiple chains. As these primitives standardize, the complexity of integrating yield strategies shifts away from builders and toward infrastructure providers.
Yield.xyz provides a single API for accessing yield opportunities across more than 75 networks. The platform standardizes staking and lending transactions, automates reward compounding, supports crosschain yield delivery, and enables structured strategies such as fixed-rate products and liquidity provisioning strategies across DeFi.
Teams building wallets, custodial platforms, fintech applications, exchanges, and institutional tooling can launch yield products faster by integrating Yield.xyz rather than managing fragmented protocol integrations and strategy infrastructure themselves.