In a partnership with Morpho Blue and Backed, PYUSD, PayPal’s regulated USD stablecoin issued by Paxos, will offer users access to DeFi yield through Backed’s tokenized real-world assets (RWAs). This integration signifies a significant advancement in PYUSD’s utility within the DeFi space.
Through the collaboration, PYUSD holders can now explore opportunities for yield generation in the decentralized finance ecosystem on Morpho Blue.
PYUSD’s Backed integration
PYUSD has quickly established itself as a contender among stablecoins since its launch a few months ago. Now, with its integration into Morpho Blue, a leading decentralized lending protocol, PYUSD holders can leverage their assets for yield generation through Backed’s tokenized real-world assets (RWAs).
The Backed RWA assets that PYUSD holders will be able to access include Backed’s bTokens, which are fully collateralized and traded on the blockchain, offering stable yields uncorrelated with the broader crypto market.
In addition to the integration of PYUSD with Morpho Blue and Backed’s tokenized RWAs, Steakhouse Financial, a prominent DeFi consultancy, is curating the PYUSD vault on Morpho Blue. This will introduce the “Dual Engine” strategy, combining traditional real-world yields with crypto yields to optimize returns for lenders. The vault utilizes Backed’s tokenized T-Bill ETF bIB01 and Lido’s wstETH liquid staking tokens as principal collateral assets, enhancing stability and diversification within the lending market.
Morpho Blue’s innovative approach allows for the creation of lending markets with any asset, empowering users to participate in decentralized finance without restrictions. By supporting PYUSD, Morpho Blue fosters inclusivity and innovation within the DeFi ecosystem. The permissionless nature of the platform encourages community-driven growth and ensures adaptability to evolving market dynamics.
Through this partnership, PayPal’s stablecoin enters the DeFi landscape, offering users access to yield opportunities previously unavailable. With Steakhouse Financial’s curation and Morpho Blue’s permissionless lending markets, users can explore new avenues for generating returns in a decentralized and inclusive manner.
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