Solana DeFi Yields With Stablecoins: PYUSD
What is PYUSD?
PYUSD, or PayPal USD, is a stablecoin issued by PayPal that has gained significant traction in the decentralized finance (DeFi) space. It is designed to maintain a 1:1 peg with the U.S. dollar, and since its inception, PYUSD has grown rapidly. Currently, it boasts a supply exceeding one billion, split 65% on Solana and 35% on Ethereum mainnet. The surge in its use can be attributed to PayPal’s aggressive incentive programs on Solana, especially on platforms like Kamino, where PYUSD lenders can earn yields between 10% and 20% annually.
DeFi Yields with Stablecoins on Solana: PYUSD Highlights
Solana’s DeFi ecosystem offers compelling opportunities for stablecoin holders, particularly those using PYUSD. Kamino, one of the leading platforms on Solana, allows users to deposit PYUSD and earn attractive yields. Here are some key takeaways:
- Kamino Finance: With over $1.5 billion in liquidity, Kamino is Solana’s second-largest DeFi platform by total value locked (TVL).
- PYUSD Yield Opportunities: Lenders on Kamino can choose between different markets offering yields of 10.85% to 13.01%.
- PayPal Incentives: PayPal has contributed significantly to this growth by offering weekly PYUSD rewards, fueling the demand for PYUSD within Solana’s ecosystem.
Yield Steps:
To obtain yield on Solana DeFi with PYUSD, follow these simple steps:
- Acquire PYUSD: Buy PayPal USD (PYUSD) on a crypto exchange.
- Deposit into Kamino: Choose the Kamino finance platform, Solana’s leading money market.
- Choose a Market: Select between the PYUSD Ethena market or the PYUSD main market.
- Start Earning: Depending on the market chosen, earn annual yields ranging from 10.85% to 13.01%, with rewards paid out in claimable PYUSD.
Factsheet:
| Name | Yield | Sector | Chains |
|---|---|---|---|
| PYUSD Ethena Market | 10.85% APY | Lending | Solana, Ethereum |
| PYUSD Main Market | 13.01% APY | Yield farming | Solana, Ethereum |
| Kamino Finance | 10-20% (varies) | DeFi | Solana |
For those seeking stable returns with minimal volatility, PYUSD presents a solid option within the Solana ecosystem. Kamino’s markets, bolstered by PayPal’s PYUSD incentives, offer yields that outperform traditional savings accounts and other DeFi platforms. With yields as high as 13.01%, this is an opportunity worth exploring for stablecoin enthusiasts.