Summary
Institutional capital and product launches both moved onchain yield markets forward during the week ending June 12th. Permissionless lending protocols drew significant institutional backing while protocol teams shipped fixed-rate products and expanded their staking ecosystems, reflecting a week where the capital formation layer and the product development layer advanced in parallel.
The week's most significant headlines: Morpho raised $175 million led by Paradigm, a16z Crypto, and Ribbit Capital, valuing the protocol at approximately $2 billion and reporting more than $11 billion in total deposits; Sky launched a fixed-rate yield product built on Pendle, targeting its $6 billion sUSDS pool with a June 25th maturity; and Hyperliquid expanded its HyperEVM ecosystem with the launch of Kinetiq's KNTQ governance token on June 11th, enabling HYPE stakers to earn a share of deployer trading fees.
Stablecoin developments
Circle (USDC): Circle's USDC circulating supply is approximately $75 billion. USDC earns approximately 3.4% APY as a lending supply rate on Aave V3 Ethereum, with rates on Base running 50 to 100 basis points higher due to tighter utilization. Comparable USDC exposure through Morpho curated vaults yields 4%-6% APY, depending on vault curator and market conditions.
Tether (USDT): Tether's USDT circulating supply is approximately $187 billion. On June 12th, Bloomberg reported that USDT briefly overtook Ether in total market value, marking a milestone for dollar-denominated stablecoin supply on public blockchains.
Sky Money (USDS): Sky's Savings Rate (SSR) pays 3.6% APY on sUSDS, with approximately $6.1 billion in sUSDS supply. This week, Sky launched its Fixed Yield product, built on Pendle Protocol, allowing USDS and stUSDS holders to lock in a fixed rate against a June 25th maturity date as a term alternative to the variable SSR.
Maple Finance (syrupUSDC, syrupUSDT): Maple Finance carries approximately $2 billion in TVL across its Syrup products. syrupUSDC earns 4.75% APY and syrupUSDT earns 4.35% APY, both sourced from overcollateralized institutional loans with near-instant liquidity.
Protocol developments
Lido Finance: stETH currently earns 2.5% APY. Lido's TVL is approximately $15 billion. The protocol operates under its V3 stVaults architecture, with modular staking accessible to institutional partners including P2P.org, Chorus One, Pier Two, and Everstake.
Morpho: Morpho raised $175 million this week in a round co-led by Paradigm, a16z Crypto, and Ribbit Capital, with Apollo Funds, Circle Ventures, and VanEck also participating. The raise values the protocol at approximately $2 billion and came alongside the protocol reporting more than $11 billion in total deposits. The capital is earmarked for deepening institutional integrations and expanding the open credit network.
Spark: Spark's SparkLend TVL is approximately $3.4 billion, with an additional $2.1 billion deployed across chains via the Spark Liquidity Layer, bringing total deployed capital to approximately $5.5 billion.
Hyperliquid: Hyperliquid's HyperEVM carries approximately $1.5 billion in TVL. On June 6th, approximately 9.92 million HYPE tokens worth roughly $565 million vested as part of the protocol's scheduled monthly release cadence. On June 11th, Kinetiq launched its KNTQ governance token on Hyperliquid, enabling token stakers to back specific HIP-3 deployers and earn a permanent share of their trading fees.
Pendle: Pendle's TVL is approximately $1.2 billion. Sky's Fixed Yield product, launched this week, introduced a stUSDS pool on Pendle maturing June 25th. Users can purchase PT-stUSDS at a discount to lock in a fixed rate to maturity, providing a structured alternative to the variable Sky Savings Rate.
Build with Yield.xyz
Institutional capital flowing into permissionless lending (Morpho's $175 million raise on June 9th), fixed-rate product launches (Sky's Fixed Yield on Pendle), and native staking extensions (Kinetiq on Hyperliquid) point toward a DeFi stack where yield is increasingly programmable and composable across rate structures. Allocators can now select between variable rates on Aave and Morpho, fixed rates through Pendle, and fee-revenue exposure on Hyperliquid, all from a single integration layer.
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