PYUSD now ranks as the tenth-largest stablecoin by market cap.<\/p>\n
PayPal\u2019s PYUSD is increasingly becoming embedded in DeFi, with Morpho Blue, a decentralized lending protocol, announcing a new vault supporting the stablecoin.<\/p>\n
On Feb. 14, Morpho announced the launch of a PYUSD vault curated by Steakhouse Financial \u2014 a DAO-focused financial advisory firm providing services to top web3 projects including MakerDAO and Lido.<\/p>\n
Liquidity providers can earn interest on PYUSD lent out to borrowers. The vault exclusively supports Lido\u2019s wstETH liquid staking token and Backed\u2019s tokenized U.S. Treasury Bills as collateral assets.<\/p>\n
Morpho said it is the first landing platform to launch support for PYUSD. The Aave community\u00a0voted<\/a>\u00a0to support PYUSD to its money market protocol with 99.99% support in early January but is yet to onboard the token.<\/p>\n <\/p>\n \u201cThis move further underscores PayPal’s commitment to fostering a vibrant and inclusive DeFi ecosystem,\u201d an announcement said. \u201cThis integration significantly strengthens the utility of PYUSD within the DeFi landscape, which has already become one of the top 10 stablecoins since its launch only a few months ago.\u201d<\/p>\n Paxos, PYUSD\u2019s issuer, is seeking to drive up the stablecoin\u2019s adoption through DeFi integrations. The company enlisted Trident Digital to promote the stablecoin as a vehicle for DeFi yields, with Trident authoring the original Aave proposal and pushing integrations on Curve Finance.<\/p>\n PYUSD was\u00a0launched<\/a>\u00a0in August but initially struggled from sluggish adoption, with daily volume sitting below $10,000 and just 10 wallets holding more than $3,000 PYUSD\u00a0three weeks<\/a>\u00a0after its mainnet deployment.<\/p>\nDeFi drives growth for PYUSD<\/h2>\n