[steakPYUSD] Adding USYC/PYUSD market


Steakhouse PYUSD MetaMorpho market was the first lending market to onboard PYUSD, a regulated stablecoin issued by Paxos, in DeFi. The Steakhouse PYUSD vault is one of the main venue for PYUSD borrowing and lending on Ethereum mainnet. We base our collateral curation choices on the “dual-engine”, offering a selection of bluechip collateral composed of both cryptocurrencies and Real-World Assets.

A new market, USYC/PYUSD-98% will be added soon to steakPYUSD to allow holders of USYC (a permissioned short duration yield fund) to borrow PYUSD. This will effectively put a floor on the expected APR for lenders of PYUSD to the market and make Steakhouse PYUSD one of the most efficient venues for lending PYUSD. It will also be the only lending venue in the whole of DeFi that sounds like “steak pie”.


SteakPYUSD was launched in January 2024 and is now used by $12M PYUSD making it one of the biggest DeFi places for PYUSD. Despite this success, a large chunk of PYUSD remains in the idle market . All the idle PYUSD remains nonetheless accessible for borrowing thanks to the Public Allocator.

As close to 2/3 of PYUSD are not put to work, the overall yield of the vault remains low, currently 1.47% (not counting MORPHO incentives). Our approach here is to offer competitive lending rates for lenders, rather than flood the engine with too much liquidity and risk creating liquidity traps.

Introducing Hashnote USYC

In order to improve the lender experience, we have been working with Hashnote in order to add their USYC product as collateral. USYC is the on-chain representation of the Hashnote International Short Duration Yield Fund Ltd. (“SDYF”). SDYF invests primarily in reverse repo and U.S. Government backed securities.

You can read our full overview of USYC: Steakhouse overview of USYC

Market details

The USYC/PYUSD market was created with the following parameters:

  • Id: 0x5125FCD427C196C8796F1A7573109AD9884E6ECE3208C25A9583B5999B4E03E4
  • Collateral: USYC
  • IRM: Adaptive Curve Irm (the usual one)
  • LLTV: 98%

The market can be seen through the Block Analitica UI.

We used a 98% due to the existence of an atomic on-chain liquidity facility provided by the Teller contract.

USYC is a permissioned token that requires KYC/AML with Hashnote. Steakhouse provides a permissionless smart contract so anyone can liquidate an USYC/PYUSD position on behalf of Steakhouse. The contract is 0x3858266579F2913Cbba5eAA6381CdDfc684728ce and the function is liquidate using the borrower address and the amount of share to liquidate.

Next steps

We will add the market to the steakPYUSD shortly. Please feel free to comment or ask any question in this thread or via DMs.

As always, SteakPYUSD holders can easily veto any change using the Aragon guardian over the next 7 days, which follows the best-in-class risk standard for lenders. Steak PYUSD holders can create a vote to revoke this change on the Aragon UI.


Hello @Steakhouse : just few questions here: I understand the collateral will be the USYC token. Is it an ERC-20 token?

In terms of liquidity, it is mentioned in the document “Steakhouse overview of USYC” you provided that: In order to enhance the immediately available liquidity of USYC tokens, Hashnote,
in connection with Paxos, has established a smart-contract controlled pool of
PYUSD that is exchangeable for USYC tokens 24/7, creating atomic liquidity for
the Fund.

Is it possible to have the address of this contract? Is it an automated market maker contract similar to Uniswap v2 or a delivery versus payment contract?

Hi @Super_Chameau , the pool of PYUSD of the docs is the Teller described in the original post, it is more akin to a DvP contract than a Uniswap V2. The address is 0x0a5EA26fdD38CF2Acb06Dc64198374C337879DAb.

Original post was also updated to include the address of the permissionless liquidation contract.

Thanks for your reply @Steakhouse , much appreciated!