csUSDC

Coinshift csUSDC is an over-collateralized and capital-efficient stablecoin issued as a receipt token for supplying Circle’s USDC to the Coinshift USDC Vault.

In collaboration with Steakhouse Financial, Coinshift has launched the Coinshift USDC vault on Morpho Protocol, designed as an ERC-4626 vault to ensure compatibility and efficiency across DeFi ecosystems.

The DeFi landscape is rapidly evolving, incorporating many practices from TradFi, while the demand for blue-chip stablecoins like USDC and USDT continues to grow. However since USDC markets remain overutilized, the borrowing rates for USDC increases significantly (up to unacceptable levels), making it capital-inefficient to borrow against assets like ETH, BTC, or their derivatives (e.g., wrapped tokens, LSTs, and LRTs).

At Coinshift, our goal is to establish a win-win ecosystem for both lenders and borrowers:

• Lenders should gain access to competitive yields via efficient lending markets and real-world asset exposure.

• Borrowers should benefit from stablecoin liquidity at sustainable and capital-efficient rates.

With csUSDC we bridge the gap between USDC liquidity needs and yield generation for institutions as well as individuals, serving as a robust financial tool to optimize their involvement in DeFi while maintaining stability and efficiency.

Benefits for USDC Lenders to Mint csUSDC

• Liquidity Retention: csUSDC holders retain the liquid value of their supplied USDC.

• Multiple Yield Sources: csUSDC holders accrue yield through high lending APR and rewards in SHIFT and MORPHO emissions, maximizing overall returns.

Benefits for Borrowers of USDC from Coinshift USDC Vault

• Improved Capital Efficiency: Borrowers can access USDC without incurring excessive collateralization or borrowing costs.

• DeFi Integration: The vault is fully compatible with ERC-4626, allowing seamless composability across DeFi protocols.

• Sustainable Borrowing: Borrowers can utilize USDC liquidity at more predictable LTV parameters addressing key challenges associated with liquidation.