Characteristics

1. Transparent Yield Distribution

csUSDL ensures complete transparency in yield generation derived from:

• USDL Base Yield: Up to 5% APY, sourced from cash equivalents and US Treasury Bills

• DeFi Lending Yield: Returns from lending USDL against blue-chip assets, including wstETH and cbBTC, in Morpho markets

• Incentives: Additional SHIFT tokens awarded for holding csUSDL

Unlike traditional stablecoins, csUSDL’s value appreciates over time through the automatic accrual of dual yields. All yield components are transparently reported using Morpho's innovative platform, ensuring that Coinshift has no control over yield allocation.

2. RWA Backing and Stability Benefits

csUSDL’s yield is underpinned by USDL, an RWA-backed stablecoin issued by Paxos International. USDL's stand-out features include:

• Daily Yield Payouts: Up to 5% APY for eligible holders – delivered directly to users, without staking contracts or token programs

• Regulatory Oversight: Issued by Paxos International and regulated by the Financial Services Regulatory Authority (FSRA) in Abu Dhabi Global Market (ADGM)

• Transparency: Monthly audited reports and reserves held solely in US Treasury Bills, ensuring stability and eliminating exposure to fractional reserve banking

Paxos’ proven compliance and expertise—established through projects like PayPal’s PYUSD—bring additional assurance and credibility to csUSDL.

3. Efficient Lending Yield and User Control

Coinshift’s csUSDL is built on Morpho's permissionless, non-custodial lending protocol, which supplies over $2 billion in assets. This integration supports:

• Over-Collateralized Lending: Lending against blue-chip assets such as wstETH and cbBTC

• Direct Benefits: Increased lending yields and better borrowing rates – without passing through DAO governance

4. Transparent Asset Management and Selection

csUSDL vaults are curated by Steakhouse Financial, experts in stablecoin and RWA strategies. Known for managing programs including MakerDAO’s $2 billion RWA initiative, Steakhouse ensures:

• Institutional-Grade Management: Only regulated real-world assets and blue-chip crypto-collateral (e.g., wstETH and cbBTC) are onboarded.

• Institutional-Grade Collateral: Assets include wstETH, an ETH liquid staking token issued by Lido DAO and a leader in staking with 28% market share; and cbBTC, backed 1:1 by BTC held in custody by Coinbase on the Ethereum network and the clear leader since its launch.
• User Control: Unlike tokens such as sDAI or sUSDe, csUSDL allows holders to influence asset allocation and challenge curator decisions, ensuring their holdings align with their preferences.

5. Self Custody and Accessibility

csUSDL empowers users with full self custody, providing autonomy and instant access to liquidity. Built on Morpho’s non-custodial and immutable smart contracts, Coinshift Vaults offer:

• Dynamic Allocation: Curators can adjust capital allocation, add or remove markets, and modify fees. These changes are subject to a time delay (ranging from 1 to 14 days), giving users ample opportunity to withdraw their funds if desired. Currently, performance fees are set at 0%, with a planned maximum fee of 5% on future borrowing rates.

• Curators have no ability to access or seize funds, ensuring that control remains with the user at all times.

6. Composability and Integration

csUSDL is seamlessly integrated with complex DeFi strategies, allowing investors to maximize yields and leverage DeFi’s composability for strategic gains.