Summary
This proposal seeks approval from Objective (market fee manager) to reduce interest fee on Euler Yield from 10% to 3% due to unstable untilization and non-competitiveness at this time. This will help create a more attractive APY for lenders during the vast amount of incentives from different projects, it is proposed to keep the YMarket alive.
Fundamentals
USDC
The largest vault on Euler Yield. The reason for the fall is obvious, the expiration of high-yielding PT’s sUSDe, USDe & tUSDe on Pendle; no alternative for loopers with the same loop-profit; incentives on other blockchains & projects; RLUSD-USDC vampire loop closed due to the suspension of RLUSD rewards.
RLUSD
Exit-liquidity pattern due to termination of self-incentives & the reasons described above also.
USDT
The most stable vault, but held only because of the incentives on OKX Wallet to Euler Earn USDT (84% of TVL).
eUSDe
Got dropped at Sep25th expiration of Ethena tokens, but stay stable TVL vault with no alternative in other landing markets, utilization dropped to record lows due to the expiration of PT-pUSDe-16Oct2025, new srUSDe/jrUSDe will change that.
Conclusion
This small step will help bring kink lend APY (6.48% → 6.98%) to current market conditions. It will make sence later, when utilization is normalized due to new PT’s integrations.
