Over $46 billion in USDC
is ready to grow via DeFi
We mapped how USDC is being used across crypto. Most of it should be earning onchain yield.
Stablecoin product-market fit is more clear than ever. And yet, there is yield left on the table. Why? We believe DeFi offers opportunities to sustain and scale USDC growth.
Yield is the next key unlock to driving
stablecoin growth
While there are many reasons USDC may be idle onchain, there is very real opportunity cost. If we assume the weighted average onchain yield rate, there’s at least a billion dollars in interest income potential.
Decentralized exchanges have consistently picked up a greater share of spot and futures volume relative to centralized exchanges. The TVL picture over time is mixed.
DeFi yields increase the capital efficiency of holding stablecoins. But your risk manager matters to build strategies, navigate risk, and sustain APYs for capital at-scale.
Gauntlet’s USDC Vaults: Depth and Breadth
We offer risk profiles to suit every capital supplier: Prime, Balanced/Core, Frontier, and our Alpha Strategies like Gauntlet USD Alpha.
Who should read this?
The opportunity cost of dry powder not earning yield adds up
Vault yield is sticky; it can be integrated via a variety of methods so that no stablecoins on your platform remain idle
Earn programs drive retention and ensure your users have a compelling reason to keep funds on your platform
Thaw Potential: Gauntlet’s Idle USDC Report
The yield is out there, it’s just been hiding in the ice.
The thaw is real.
About Gauntlet
Gauntlet is a leading DeFi strategy and risk analytics firm specializing in protocol design, on-chain capital efficiency, and risk-aware structuring.
Trusted by top protocols and institutions, Gauntlet uses quantitative simulation models to optimize yields and manage risk in complex on-chain environments.
Gauntlet currently optimizes over $1 billion across DeFi vaults and has helped secure billions more across major protocols. In partnership with Apollo Global Management, Gauntlet designed a levered DeFi strategy for Apollo’s tokenized credit fund, enabling institutions to enhance RWA yields while maintaining risk controls and composability across on-chain markets.
Safety
Critical financial infrastructure can’t afford missteps in a competitive, dynamic industry. Our work guides protocols in evaluating risk responsibly.
Rigor
The frontier of finance requires analysis that is precise, methodical, and diligent in understanding and utilizing economic risk.
Innovation
Commitment to R&D allows us to understand novel risks in a rapidly developing industry — before they can adversely impact our clients.
Efficiency
Battle-tested quantitative techniques from TradFi are inherent in our modeling. Balancing capital efficiency and healthy risk is in direct conjunction with client return.
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