Yield markets advanced again this week with major stablecoin launches, expanding protocol activity, and accelerating TVL growth across new networks. From Circle’s tokenized money market fund on Solana to the rapid adoption of Plasma-native stablecoins, opportunities for builders and users to capture yield continue to expand.
Let’s take a closer look at this week’s developments.
Stablecoin Developments
Circle announced that USYC is now live on Solana. As a tokenized money market fund, USYC accrues yield through price appreciation while maintaining onchain convertibility into USDC. Unlike static collateral, USYC captures yield automatically, helping to address capital inefficiency across many DeFi venues.
Plasma also saw the launch of USDai on the network, a new yield-bearing stablecoin backed by onchain treasuries. Demand has been strong from the start, with USDai surpassing $500 million in TVL within weeks of launch. Users can now access USDai on Morpho via the Yield.xyz API, positioning the asset as a core stablecoin across multiple ecosystems.
Meanwhile, Sky Ecosystem’s USDs continued to offer competitive returns through Compound, with yields of 10.49% APY on Ethereum mainnet via Compound v3 and 8.41% APY on Base.
Ethena Labs also expanded to Plasma this week, bringing new Pendle pools for USDe and sUSDe. Both pairs are yielding close to 10% with deep liquidity supporting trading. Yield token holders are eligible for additional rewards, including significant Ethena Points multipliers—60x for USDe and 20x for sUSDe—as well as XPL liquid rewards, adding further incentives for participation.
Protocol Updates
Pendle’s expansion onto Plasma has already made it one of the largest protocols on the network. Within two days of launch, it climbed into the top seven protocols by TVL with $167 million deposited, underscoring strong demand for stablecoin yield strategies and the pull of its incentive programs.
On Solana, Drift’s lending markets continue to gain scale. Its SOL-based lending vault, dSOL, now holds 1.7 million SOL in deposits, offering a 6.9% APY. The growth of Drift highlights Solana’s deepening onchain liquidity and its appeal to traders seeking efficient borrowing and lending venues.
Institutional yield activity is also growing. Gauntlet crossed $50 million in TVL on Solana, with most capital allocated through Drift’s lending vaults. By applying its risk-managed frameworks, Gauntlet is creating a pathway for institutions to allocate into DeFi lending opportunities with greater confidence and structure.
Finally, Morpho extended its lead on Base and reinforced its position across other chains. TVL on Base has now surpassed $3 billion, making Morpho the largest protocol on the network. The milestone highlights the strength of permissionless lending markets and the accelerating adoption of Morpho’s curated approach to liquidity.
Build With Yield.xyz Today
That concludes this week’s review. With USYC live on Solana, USDai establishing itself on Plasma, and protocols such as Pendle, Drift, and Morpho scaling rapidly, yield opportunities are expanding across every layer of DeFi.
Yield.xyz provides a single integration for apps, wallets, and fintech products to access these opportunities, making it easier than ever to deliver the best of onchain yield to end users everywhere. Start building with the Yield.xyz API today.