PayPal launches PYUSD Savings Vault on Spark amid an effort to increase stablecoin deposits to one billion dollars
PayPal is launching the PYUSD -0.02%
Savings Vault on the decentralized lending platform Spark, presenting a new way for stablecoin users to earn yield on their holdings.
The Spark website announces an APY of 4.25% for the vault, equivalent to the expected yields in other stablecoin vaults for the larger centralized stablecoins USDC and USDT, as well as Spark's native token USDS, which is issued by the parent organization, CIELO -4.64%
(previously MakerDAO).
The yield of the PYUSD Savings Vault is anchored to the Sky Savings Rate, which is funded by the revenues of the Sky Protocol, according to Spark's documentation.
Sky generates revenue from stability fees from over-collateralized loans, investments in real assets, and by providing liquidity in its first and largest subDAO, Spark.
Spark, launched in 2024, is a DeFi lending and liquidity protocol that offers a variety of stablecoin savings vaults that generate yield and the decentralized money market SparkLend, a fork of Aave v3 that allows users to obtain over-collateralized stablecoin loans by depositing cryptocurrencies.
PYUSD was integrated into SparkLend in September, allowing users to lend and borrow the stablecoin.
PayPal and Spark then announced their intention to increase deposits to $1 billion, after seeing approximately one-fifth of that amount deposited in the first 24 hours.
Currently, there is nearly $150 million in supplied PYUSD, with a gain of approximately 2.11%, and around $67 million lent, according to Spark's figures.
