Lenders & Borrowers benefits

How Lenders and Borrowers benefit from csUSDL.

Lenders come with USDC and mint csUSDL. Borrowers come with blue-ship collateral (selected by Steakhouse) and mint csUSDL. Overall, we are lending a yield bearing stablecoin to blue chip assets.

Important:

For graphical representation and simplicity, wUSDL is represented as USDL. wUSDL is the wrapped version of USDL, designed for enhanced DeFi composability across multiple chains and ecosystems.

Lender Strategy

How Coinshift's USDL Vault Functions and Key Benefits for Lenders

Lenders gain:

• Curated Risk Profiles

  The csUSDL Vault supports only blue-chip collateral, allowing users to choose a secure, tailored lending environment. This ensures lenders can avoid exposure to riskier, long-tail assets, focusing exclusively on high-quality, stable collateral.

• Transparent​

  Morpho Vaults are noncustodial with immutable logic and onchain verifiable allocations, ensuring users have full visibility into the markets where their assets are deployed.

• High Yield Potential

  Earn up to 10% APY through combined returns from the underlying real-world asset and optimized DeFi lending markets via Morpho’s capital-efficient markets. Interest earned by suppliers are optimized by dynamically rebalancing across multiple markets with the best risk-return ratio.

• Lending Rewards

  Gain token incentives from Coinshift and Morpho, enhancing total returns.

• Enhanced DeFi Opportunities

  Maximize earning potential by leveraging csUSDL in various DeFi strategies.

Borrower Strategy

How Coinshift's USDL Vault Functions and Key Benefits for Borrowers

Borrowers gain:

• Low Borrowing Rates: Access affordable liquidity to fund strategic needs.

• Borrowing Incentives: Earn rewards in the form of token incentives from Coinshift and Morpho.

• Dual Role Flexibility: Borrow USDL and supply it to the Coinshift vault to mint csUSDL, reaping all associated benefits as a lender.

• Strategic Leverage: Maintain asset exposure while borrowing, enabling capital efficiency and continued potential asset appreciation.

• Tax Efficiency: Use assets as collateral to access liquidity without triggering taxable events, effectively deferring capital gains.

• Liquidity During Market Downturns: Tap into USDL to meet operational or strategic financial needs without selling assets at depressed values, preserving long-term positions for potential market recovery.