PayPal launches PYUSD Savings Vault on Spark amid push to grow stablecoin deposits to $1 billion
PayPal introduced the PYUSD Savings Vault on the Spark lending platform, offering users a 4.25% APY on their stablecoin holdings.Summary
PayPal is launching the PYUSD Savings Vault on the decentralized lending platform Spark to allow users to earn yield on their PYUSD stablecoin holdings, advertising a 4.25% APY anchored to the Sky Savings Rate.
The yield is funded by Sky Protocol's revenue from stability fees, real-world asset investments, and liquidity provisioning in its subDAO, Spark. Spark, a DeFi lending protocol launched in 2024, aims to grow PYUSD deposits to $1 billion, building on initial success where about a fifth of that goal was deposited within 24 hours of PYUSD integration into SparkLend in September.
The new vault utilizes Spark's Savings V2 product line and the Spark Liquidity Layer, which deploys 90% of deposits into yield-generating strategies, including onchain crypto lending and corporate debt, while 10% remains for instant withdrawals. PayPal launched PYUSD in 2023, and with Paxos recently receiving a federal banking charter, PYUSD is now the largest dollar stablecoin issued under federal regulatory oversight.
(Source：The Block)