Etherfi expands DeFi access with U.S. Liquid Reserve Vault

Etherfi has launched a Liquid Reserve Vault for American users, aiming to maximize USD-denominated returns on their USDT and USDC holdings. The launch expands access to Etherfi’s DeFi-native vault infrastructure.

The Liquid reserve vault offers a simple way for users to earn rewards on their USD holdings via a set of DeFi opportunities. For instance, a user may deposit USDC or USDT, which is then lent to Morpho, a permissionless lending protocol that offers competitive yields.  The vault uses Midas infrastructure and is available for U.S. clients as of now. 

Liquids Reserve Vault auto rebalances USDT/USDC deposits

Ethereum’s shift of its consensus mechanism to Proof of Stake changed the way holders earn rewards on their ETH holdings. The challenge posed, however, is that staking locks capital and limits flexibility. The Etherfi protocol addressed the issue by enabling users to earn Ethereum stacking rewards and by adding native staking and liquidity via a liquid staking token. Stakers can mint eETH that retains liquidity while automatically compounding rewards. 

Early staking protocols prioritized liquidity and rewards, but Etherfi went further by adding user ownership and decentralization. The launch of Liquid Reserve Vault builds on Etherfi’s liquid ecosystem, which allows users to save, grow, and spend crypto easily. The evolution outlines how the ecosystem has matured from liquid staking to staking, and now to a non-custodial model that blends both. 

The Liquid Reserve Vault allows users to deposit USDC or USDT, which is automatically rebalanced across protocols. The current split is approximately 55% in the Sentora PYUSD on Ethereum, with an estimated APY of 5.58%, and a 45% distribution for withdrawal liquidity, providing quick access. Yields generated are compounded automatically with no platform fees. 

Etherfi’s Total Locked Value has climbed to $8.68 billion as of now, based on data delivered by DeFiLlama. The liquid stacking protocol now offers a 14-day trailing APY of 6.99% for USD and 4.71% for ETH. The BTC yield and HYPE yield offer 2.18% and 2.32% APY, respectively.

Etherfi’s Liquid Reserve Vault adds to its liquid stacking yield suite

The Etherfi Liquid USD vault offers users an earning opportunity from a diversified basket of market-neutral yield opportunities while providing exposure to the Etherfi ecosystem. The vault allows users to deposit USD, USDT, DAI, and USDe that are then deployed to a set of DeFi protocols. The vault may start using AAVE, Curve/Convex, Gearbox, and Pendle, and later scales to new yield sources such as  Uniswap V3, Morpho Blue, and Aura/Balancer. 

Additionally, Etherfi has an Ethereum liquid stacking vault, an automated strategy vault that provides Etherfi customers with access to their eETH in the DeFi ecosystem. The liquid vault allows users to deposit eETH, weETH, or WETH, and the vault automatically allocates funds across a variety of DeFi positions, generating rewards while saving on gas fees through transaction bundling. 

The Liquid BTC Vault, built on Veda infrastructure, provides a simple way for users to earn from a diverse set of BTC yield markets, including bespoke liquidity deals, pre-launch farming, and token incentives. The Liquid BTC Vault has many deposit options, including eBTC, WBTC, LBTC, and cbBTC. The vault used a range of lending and borrowing protocols, such as AAVE and Morpho, to take advantage of rate arbitrage across BTC assets and competitive stablecoin yields. 

Etherfi also launched a Liquid HYPE Yield vault built on the Midas infrastructure, allowing users to earn from a diversified basket of HYPE yield opportunities. Users can deposit HYPE and beHYPE, which are then deployed to an evolving set of DeFi protocols.

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