SGR 73: yUSD

yUSD Gauge Request

• Targeted Pair: LP-yUSD12NOV2025
• IBT Contract Address: 0x702bb558601e597b513f704e2017e378912baf96
• Current TVL in the Pair’s Liquidity: ~$358
• TVL YieldFi yUSD: $14,706,011
• Twitter: https://x.com/GetYieldFi
• Website: https://yield.fi
• Chain: Ethereum

Simple summary

yUSD is a yield-bearing stablecoin issued by YieldFi, fully backed by USDC. It accrues yield internally using a diversified strategy across different DeFi money legos. The token follows the ERC-4626 standard and the native underlying asset is USDC.

This proposal aims to add a gauge for LP-yUSD12NOV2025 on Ethereum to bootstrap liquidity.

Benefit of this integration for YieldFi

• Could support PT-yUSD looping strategies via Morpho (and AAVE)
• Unlocks a larger layer of possible strategy space for yUSD across DeFi
• YieldFi and arbitrageurs will be able to arbitrage the different rates between, Napier, Pendle and Spectra and execute delta neutral farming strategies
• By deploying yUSD into Spectra, through looping, YieldFi could gain $4-6.5M USD in TVL, per million dollar worth of liquidity deployed, depending on the collateral health factor and the leverage used.

Benefit of this integration for Spectra

• Adds a new stablecoin-backed PT market
• Could PT-yUSD looping strategies via Morpho
• Attracts institutional players seeking predictable, yet high-yielding opportunities
• Allows smart players, to arbitrage the price differences between PTs and YTs on different platforms

Context

• YieldFi is currently scaling with ~14,7M in deposits
• It makes sense for YieldFis LPs to deposit through Spectra, as outlined in the benefits section above