Lido, the largest liquid staking protocol on the Ethereum network, is expanding its services beyond Ether with the launch of a new yield product designed specifically for stablecoin holders.
The new offering is part of an updated version of Lido Earn, which now includes two main vaults. One vault, called EarnETH, is designed for Ether-based assets, while the second vault, EarnUSD, focuses on stablecoins such as USDC and USDT.
A vault works as a pooled investment system where users deposit their crypto and the platform automatically allocates those funds across different strategies to generate returns.
The newly introduced EarnUSD vault marks Lido’s first product focused entirely on stablecoins. Deposited funds are distributed across various decentralised finance opportunities on Ethereum, including lending markets and other yield-generating protocols.
Users receive a token that represents their share in the vault. Over time, returns accumulate as the underlying strategies generate yield.
The EarnETH vault functions in a similar way but supports Ether-related assets like ETH, WETH, and Lido’s stETH token. These deposits are spread across DeFi platforms such as Aave, Uniswap, and Morpho, with the system automatically shifting funds toward strategies delivering better returns.
The launch comes as stablecoins have become a major component of decentralised finance activity. According to Lido, nearly half of DeFi activity on Ethereum now involves stablecoins.
The company says the new product aims to make earning returns in crypto simpler for users who may not want to actively manage complex DeFi strategies.
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