Lido Expands Earn Product Line With Stablecoin Vault for Ethereum Strategy

According to Lido’s launch details, the protocol has introduced EarnUSD for USDC and USDT alongside EarnETH, broadening its Ethereum-based yield products beyond its traditional ether-focused offerings.

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Summary

Lido has launched a revamped version of Lido Earn centered on two vaults, EarnUSD and EarnETH, expanding beyond its traditional ether-focused products. EarnUSD is Lido’s first stablecoin-specific vault and accepts USDC and USDT, automatically allocating user deposits across Ethereum DeFi strategies such as lending markets to generate yield. EarnETH serves ETH, WETH and stETH deposits and routes funds across protocols including Aave, Uniswap and Morpho, shifting allocations toward stronger-performing strategies. According to a press release shared with CoinDesk, roughly half of DeFi activity on Ethereum now involves stablecoins. Marin Tvrdić of the Lido Ecosystem Foundation said stablecoins are a fundamental part of DeFi and that Lido had not previously served those users.

Terms & Concepts
  • EarnUSD: Lido’s stablecoin yield vault that accepts USDC and USDT and automatically deploys deposits across DeFi strategies on Ethereum.
  • DeFi: Short for decentralized finance, referring to blockchain-based financial applications such as lending, trading, and yield strategies that operate without traditional intermediaries.
  • stETH: Lido’s liquid staking token that represents staked ether and is designed to be used across Ethereum-based DeFi applications.