Decentralized finance (DeFi) lending protocol Spark has shifted a significant portion of its treasury reserves away from US government bonds toward crypto-native yield strategies, marking a notable pivot in how onchain yield is generated amid declining Treasury returns. On Thursday, Spark announced a $100 million allocation of its stablecoin reserves to Superstate’s Crypto Carry Fund (USCC), a regulated basis-trading fund that capitalizes on price differences between spot and futures markets across leading digital assets. This fund offers DeFi protocols a market-neutral yield opportunity similar to those traditionally accessed by hedge funds.
Superstate’s USCC currently manages approximately $528 million in assets and delivers a 30-day yield of 9.26%. Robert Leshner, CEO of Superstate, highlighted that this fund allows Spark to tap into yield opportunities that are uncorrelated with Federal Reserve policies—an advantageous diversification as the Fed grapples with balancing inflation management and economic growth.
With the 10-year Treasury yield recently dipping below 4%, Spark cautions that the Fed’s prospective rate cuts might pressure stablecoin issuers and DeFi platforms heavily reliant on short-duration Treasurys, prompting a search for uncorrelated returns. Meanwhile, Tether and USDC issuer Circle remain the largest crypto-native holders of US government debt, holding over $132 billion combined as of September, a figure poised to grow alongside stablecoin market expansion.
Onchain yield strategies have evolved considerably—from straightforward lending and staking to advanced market-neutral and restaking approaches. Research by Galaxy Digital indicates that while Treasury yields continue to define the baseline “risk-free floor” for DeFi returns, protocols are increasingly embracing crypto-native income streams like basis trading and validator rewards that operate independently of traditional interest rate trends.
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