Spark marks first major rotation from US Treasurys into regulated DeFi
Spark rotated $100 million from US Treasurys into Superstate’s regulated Crypto Carry Fund for uncorrelated yield.Summary
Decentralized finance (DeFi) lending protocol Spark has moved $100 million of its stablecoin reserves out of US government bonds and into Superstate’s regulated Crypto Carry Fund (USCC). This move signals a pivot by DeFi protocols toward crypto-native yield strategies as returns on US Treasurys continue to compress, with the 10-year yield recently falling below 4%. The USCC fund employs basis trading to generate market-neutral yield from derivatives markets, offering returns uncorrelated with Federal Reserve rate policy. Superstate CEO Robert Leshner highlighted that this diversification is timely as declining Treasury yields pressure protocols heavily exposed to short-duration Treasurys. While stablecoin giants like Tether and Circle hold over $132 billion in US debt, this rotation represents an evolving trend where onchain yield strategies move beyond simple lending to incorporate complex, uncorrelated mechanisms like basis trading and restaking.
(Source：Cointelegraph)