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Etherfi has launched a stablecoin yield vault for U.S. users that deploys USDC and USDT deposits across decentralized lending protocols to generate an average 6.99% annual percentage yield, the protocol announced this week.
The Liquid Reserve Vault uses auto-rebalancing infrastructure to manage positions across platforms including Morpho while maintaining a 45% liquidity buffer for withdrawals, expanding access to non-custodial DeFi yields for American investors at a time when regulatory uncertainty has limited competing products.
At its core, the Etherfi Liquid Reserve Vault enables users to deposit USDC or USDT, which are then deployed across a range of DeFi protocols to generate yield.
According to Etherfi’s documentation, deposited funds are currently lent to Morpho, a permissionless lending protocol designed to optimize interest rates by matching borrowers and lenders more efficiently than traditional pools.
“The Liquid Reserve Vault offers users a simple way to earn yield on their USD holdings through a diversified set of DeFi-native opportunities,” — Etherfi, product documentation.
The vault operates using infrastructure provided by Midas and is designed to rebalance deposits automatically.
Etherfi says this structure allows users to access competitive yields without having to actively manage positions, monitor rates, or move capital between protocols manually.
Importantly for U.S. users, the Etherfi Liquid Reserve Vault is available immediately, expanding access to Etherfi’s broader ecosystem at a time when regulatory uncertainty has limited the availability of certain yield products in the United States.
A defining feature of the Etherfi Liquid Reserve Vault is its emphasis on liquidity. According to published allocation data, roughly 55% of deposited assets are currently deployed into Sentora PYUSD on Ethereum, generating an estimated annual percentage yield of about 5.58%.
“All yields generated by the vault are automatically compounded, and the vault does not charge platform fees,” — Etherfi, protocol disclosures.
This design reflects lessons learned from earlier generations of DeFi yield products, where higher returns often came at the expense of capital lockups and delayed withdrawals.
By maintaining a significant liquidity buffer, the Etherfi Liquid Reserve Vault aims to strike a balance between yield optimization and user flexibility.
The vault also builds on Etherfi’s earlier work in liquid staking. After Ethereum’s transition to proof-of-stake, staking rewards became a central feature of the ecosystem, but they often required locking ETH.
Etherfi addressed this with eETH, a liquid staking token that allows users to retain liquidity while earning staking rewards. The Etherfi Liquid Reserve Vault extends that philosophy from ETH into USD-denominated assets.
The launch of the Etherfi Liquid Reserve Vault adds another layer to Etherfi’s expanding suite of yield products.
According to data from DeFiLlama, Etherfi’s total value locked has climbed to approximately $8.68 billion, reflecting strong adoption across its staking and vault offerings.
Etherfi reports a 14-day trailing APY of about 6.99% for USD-denominated products and 4.71% for ETH staking. Bitcoin and HYPE-related products currently offer lower yields, at roughly 2.18% and 2.32% APY, respectively, according to the same data.
“The Liquid USD vault gives users exposure to a diversified basket of market-neutral yield opportunities while staying within the Etherfi ecosystem,” — Etherfi, protocol overview.
Beyond the Etherfi Liquid Reserve Vault, the protocol also operates an Ethereum liquid staking vault that automatically deploys eETH, weETH, or WETH across multiple DeFi strategies.
Etherfi says this automated approach reduces gas costs through transaction bundling while maintaining exposure to Ethereum-native yields.
Etherfi’s broader product lineup includes a Liquid BTC Vault built on Veda infrastructure, offering yield opportunities across Bitcoin-denominated assets such as WBTC, eBTC, LBTC, and cbBTC.
That vault uses protocols like Aave and Morpho to capture rate arbitrage and stablecoin yields linked to Bitcoin liquidity.
In addition, Etherfi recently introduced a Liquid HYPE Yield vault, also built on Midas infrastructure, allowing users to earn returns on HYPE and beHYPE through diversified DeFi strategies.
Taken together, these products illustrate Etherfi’s strategy of building modular, non-custodial yield tools that can adapt to different asset classes.
The Etherfi Liquid Reserve Vault plays a central role in that strategy by targeting dollar-denominated assets, which remain the primary unit of account for many investors.
As competition intensifies among DeFi protocols offering yield products, Etherfi’s focus on automation, liquidity, and regulatory-aware access for U.S. users could prove decisive.
For now, the Etherfi Liquid Reserve Vault represents another step in the maturation of DeFi from experimental yield farming to structured, vault-based financial products designed for a broader audience.
