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The aim is to simplify the process for users to earn returns on cryptocurrency without the need to select or oversee strategies on their own.
Key points:
- Lido has introduced a new yield product called EarnUSD, which allows users to deposit USDC and USDT into a pooled vault that automatically distributes funds across various DeFi strategies to produce returns.
- This launch extends Lido’s offerings beyond its traditional focus on ether, unveiling two user-friendly yield vaults—EarnUSD for stablecoins and EarnETH for ether-based assets—aimed at facilitating a more passive earning experience for users.
Lido, recognized as the largest liquid staking protocol on Ethereum, is broadening its scope with the introduction of a new product tailored for stablecoin holders.
On Thursday, the platform revealed an updated version of its yield product, Lido Earn, which now features two vaults: EarnETH for ether-based assets and EarnUSD for stablecoins. The objective is to simplify the process for users to earn returns on cryptocurrency without the necessity to select or oversee strategies themselves.
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Essentially, a vault functions as a pooled investment vehicle where users deposit cryptocurrency, and the platform automatically allocates those funds across various strategies aimed at generating yield.
The newly launched EarnUSD vault represents Lido’s initial offering specifically designed for dollar-pegged tokens. It accepts stablecoins USDC and USDT, distributing deposits across a range of decentralized finance (DeFi) opportunities on Ethereum, such as lending markets and other yield-generating strategies. Users receive a token that signifies their share of the vault, with returns compounding over time.
The EarnETH vault operates in a similar manner but focuses on ether-related assets, including ETH, WETH, and Lido’s stETH. Deposits are diversified across multiple DeFi protocols, including Aave, Uniswap, and Morpho, with the system reallocating funds toward better-performing strategies.
The introduction of the stablecoin vault comes in response to the growing significance of dollar-pegged tokens within Ethereum’s DeFi landscape. Approximately half of DeFi activity on the network now relates to stablecoins, as indicated in a press release distributed to CoinDesk.
“Stablecoins are a fundamental part of DeFi, and until now we weren’t serving those users,” stated Marin Tvrdić of the Lido Ecosystem Foundation, in the press release.
Read more: Lido Launches GG Vault for One-Click Access to DeFi Yields
