TL;DR:
Lido, the largest DeFi liquid staking protocol by total value locked, launched EarnUSD, its first stablecoin vault, reorganizing its Earn product line. This allows users to deposit USDC and USDT to earn yields through dollar-denominated strategies on the Ethereum network
The product automatically allocates capital across on-chain lending positions, real-world asset (RWA) integrations, and higher-yield structures. Users receive an earnUSD token representing their position, which compounds returns over time.
The reorganization turns Lido Earn into two distinct vaults: EarnETH and EarnUSD. The former accepts ETH, WETH, and stETH, deploying funds into protocols such as Aave, Uniswap, and Morpho. Previously, the Earn line offered three thematic strategies —Golden Goose Vault, DVV, and stRATEGY— whose simplicity was questionable. The goal of this update is precisely to eliminate that fragmentation.
“Stablecoins are a fundamental part of the DeFi market, and until now we weren’t serving those users. That changes today with EarnUSD,” said Marin Tvrdić, head of Earn Partnerships at the Lido Ecosystem Foundation.
As part of the launch, Lido DAO approved the allocation of $5 million from its treasury to the vaults, under the same conditions as regular users. Should any vault record losses, the DAO‘s position absorbs them first, according to the official announcement. This shared-risk structure seeks to align incentives between the protocol and depositors.
The launch is part of a strategy approved last December, when the DAO proposed a budget of $60 million to expand Lido’s products beyond liquid staking. The protocol currently manages around $19 billion in TVL according to DefiLlama, with more than 8.7 million ETH staked. That figure represents, however, a decline of over 50% from the all-time high of $42 billion reached last August.
