Lido, the largest liquid staking protocol on Ethereum, is broadening its offerings beyond ether (ETH) with a new product targeting stablecoin holders. The revamped Lido Earn now features two vaults: EarnETH for ether-based assets and EarnUSD for stablecoins, simplifying yield generation for users.
The new EarnUSD vault accepts USDC and USDT, automatically deploying funds across decentralized finance (DeFi) opportunities like lending markets on Ethereum to generate yield. Users receive a token representing their stake, with returns accumulating over time. The EarnETH vault operates similarly for ether assets, directing deposits to protocols such as Aave, Uniswap, and Morpho. This expansion acknowledges the significant role stablecoins now play in Ethereum's DeFi ecosystem, accounting for roughly half of the network's DeFi activity.