Summary
Onchain capital markets this week continued a shift from simple variable-rate deposits toward more structured yield products: fixed-rate term positions, protocol-level yield routing, and privacy-preserving vault infrastructure all attracted notable inflows. The dominant pattern was composability, with separate protocols linking their mechanics together to offer products neither could deliver alone.
This week, Circle executed a record $4.4 billion USDC transfer through HyperEVM as part of the Coinbase treasury arrangement underpinning the new buyback model, and Aave's risk stewards tightened liquidation parameters on PT-srUSDe positions ahead of their June 25th maturity. On June 17th, Zama, Morpho, and Steakhouse Financial announced the Steakhouse Confidential USDC Prime vault, the first DeFi yield product on Ethereum to use fully homomorphic encryption, with deposits opening June 23rd. By the close of the week, Pendle's sUSDS pool had crossed $50 million in TVL within two weeks of launch, with depositors locking in fixed APYs above 4.7%.
Stablecoin developments
Circle (USDC): Circle's USDC circulating supply is approximately $76.5 billion across more than 30 networks. On June 12th, Circle executed the largest single onchain USDC transfer ever recorded, moving approximately $4.4 billion in USDC to Coinbase through HyperEVM, Hyperliquid's EVM-compatible layer. The transfer represents roughly 5.8% of circulating supply and is linked to Coinbase's role as the official USDC treasury deployer on Hyperliquid following the AQA v2 governance approval. USDC currently earns approximately 3% to 4% APY through Aave V3 on Ethereum and approximately 4% to 5% APY through curated vaults on Morpho.
Tether (USDT): Tether's USDT circulating supply is approximately $186.5 billion, making it the largest stablecoin by market capitalization. Maple currently offers competitive USDT yields through syrupUSDT at 4.15% APY, while USDT lending yields on Aave and Morpho range from 2% to 5% APY.
Sky Money (USDS): Sky's sUSDS contract holds approximately $6.1 billion in deposits, with the Sky Savings Rate currently set at approximately 3.65% APY. Sky's fixed-rate yield product, built on Pendle and launched in early June, attracted new capital this week: the corresponding Pendle sUSDS pool crossed $50 million in TVL within two weeks of launch, with depositors accessing fixed rates of 4.7% to 5.2% APY through PT-sUSDS positions.
Maple Finance: Maple Finance carries approximately $2 billion in TVL, with syrupUSDC accounting for approximately $1.5 billion of that total. syrupUSDC earns approximately 4.6% APY from secured institutional loans fully collateralized with digital assets.
Protocol developments
Aave: Aave's TVL is approximately $12.7 billion. On June 12th, Aave's risk stewards adjusted liquidation parameters for PT-srUSDe positions on Ethereum V3 ahead of the token's June 25th maturity. In Stablecoins E-Mode (E-Mode 44), the liquidation bonus was reduced from 4.3% to 4.1%. In USDe E-Mode (E-Mode 45), the LTV was raised to 91.6%, the liquidation threshold moved to 93.6%, and the liquidation bonus was cut from 1.8% to 1.3%. The changes follow LlamaRisk's re-evaluation of PT parameter methodology as Pendle principal tokens near expiry.
Morpho: Morpho holds approximately $6.9 billion in TVL. On June 17th, Zama, Morpho, and Steakhouse Financial announced the Steakhouse Confidential USDC Prime vault, the first DeFi yield product on Ethereum to use fully homomorphic encryption. The vault wraps USDC as cUSDC using Zama's FHE technology, shielding depositor balances and transfer amounts while maintaining compliance and auditability. Deposits open June 23rd, with yield generated through Morpho's lending markets backed by cbBTC, WBTC, and wstETH, with SteakhouseFi managing credit allocation.
Hyperliquid: Hyperliquid's TVL is approximately $6 billion. On June 12th, Hyperliquid validators voted in favor of AQA v2, a governance framework that routes 90% of USDC reserve yield generated on the platform to the protocol's Assistance Fund for HYPE buybacks. HYPE reached a new all-time high of $76.67 on June 16th, supported in part by the buyback approval.
Pendle: Pendle holds approximately $1 billion in TVL. The Pendle sUSDS pool, opened in conjunction with Sky's fixed-rate yield product, crossed $50 million in TVL within two weeks of launch, with depositors accessing fixed APYs of 4.7% to 5.2% on PT-sUSDS positions. The pool can absorb swaps of up to $27 million without triggering impermanent loss for liquidity providers who hold through maturity, targeting a segment of the approximately $6 billion sUSDS market.
Build with Yield.xyz
This week's dominant structural theme was yield routing: how separate protocols can link mechanics to generate returns neither could produce alone. Sky and Pendle combined to give the Sky Savings Rate a fixed-rate product that drew $50 million in deposits within two weeks; Morpho's confidential vault with Zama introduced FHE encryption to onchain yield for the first time on Ethereum. For developers building across these systems, this week's activity shows how fixed rates and institutional-grade credit can now be composed into a single product stack.
Yield.xyz connects developers and allocators to more than 3,000 onchain opportunities across 80+ networks, covering staking, lending, perpetuals trading, and DeFi vaults through a single onchain integration.
Build with Yield.xyz: docs.yield.xyz