Summary
This proposal seeks approval from the Euler community to list YieldFi’s yUSD, a yield-bearing stablecoin, as a collateral asset in the Euler Yield market. Adding yUSD will diversify collateral options on Euler, foster new DeFi strategies, and allow users to supply a productive, high-yield stablecoin while borrowing against it.
Introduction
YieldFi is a permissionless on-chain asset management platform tailored for treasuries, funds, foundations, and individual investors, offering liquid yield bearing tokens across a variety of assets. Since its inception, YieldFi has rapidly grown to $110M in TVL, driven by a commitment to providing transparent, secure, and high-yield decentralized asset management.
Motivation & Context
yUSD is an ERC-20 compliant, fully collateralized, and yield bearing stablecoin issued by YieldFi. The yUSD token is designed as a cross-chain asset management vehicle, offering users 10% to 12% APY on USDT, USDC, and DAI with daily rewards and deep integration in DeFi protocols like Pendle, Morpho, Curve etc.
YieldFi’s yUSD has experienced strong growth in yield and TVL, reflecting increasing user trust and adoption. The token has no lock-in period, offers deep liquidity across several money markets, and can be withdrawn or swapped anytime. yUSD is already supported and traded on major EVM chains.
Benefits to Euler Users
Collateral Diversity: Expands high-quality stablecoin choices, supporting looping and leveraged yield strategies.
Yield on Collateral: yUSD’s productive nature enables users to earn yield on supplied collateral while borrowing, maximizing capital efficiency.
Deep Liquidity: Well-established pools across DeFi ensure robust liquidity for yUSD interactions.
Capital Efficiency: yUSD’s strong peg and yield attributes support borrowing, leveraged farming, and a range of new DeFi strategies.
Pricing Oracles
yUSD price feeds can be sourced from established decentralized oracles (e.g., Chainlink, Pyth), referencing fundamental price i.e. exchangeRate() value
Liquidity Pools
Security Considerations
Cyfrin Audit Report
Halborn Audit Report
Cantina Audit Report
Important Links
Website
Documentation
Transparency Dashboards
Dune Analytics
Github
Next Steps
Pending community approval, risk assessment will be conducted, and Gauntlet will finalize risk parameters for yUSD’s inclusion in the Euler Yield market.