High Yield USD (hyUSD) - The Future of DeFi Savings


Tired of low or inconsistent savings rates? Meet High Yield USD (hyUSD), an overcollateralized DeFi savings flatcoin with up to 8% APY for holders, deployed using the Reserve protocol. While inflation devours purchasing power like a black hole swallowing ...

By: Tom Sawyer Loading...

High Yield USD (hyUSD) - The Future of DeFi Savings

Tired of low or inconsistent savings rates? Meet High Yield USD (hyUSD), an overcollateralized DeFi savings flatcoin with up to 8% APY for holders, deployed using the Reserve protocol.

While inflation devours purchasing power like a black hole swallowing light, hyUSD breaks through the disorder boldly declaring “WAGBI” — We’re All Gonna Beat Inflation. Built on the speed and efficiency of the Base L2, hyUSD is primed to be DeFi’s next currency obsession. Hold up, though — what’s a “flatcoin”? Here are two spot-on rundowns from economist Nouriel Roubini and Coinbase.

hyUSD is fully decentralized and governed by a community of stakers. Here are five reasons why hyUSD can transform inflation resistant DeFi savings.

1. Fully asset-backed + scalable high-yield opportunities

hyUSD transcends typical scalability barriers thanks to its 1:1 asset backing capital efficiency, which is yield-bearing and shared mostly with token holders onchain. In other projects, what might start as a promising 15% yield at a $1 million TVL could shrink to 5% as the TVL escalates to $3 million. hyUSD, however, transcends this limitation through its flexible adaptability of governance to modify asset backing as the market changes. Think of it like this: hyUSD governors can fish where the fish are. During the last 12 months, offchain treasury exposure has been the yield du jour with around 5% APY. However, it’s evident the market is turning, with material outflows of offchain assets into onchain DeFi where the yields on relatively safe assets can be 2% better at 7% and beyond. hyUSD on Base is already backed with Bluechip B+ rated USDC getting its yield from Stargate and Compound positions, and has the added security of overcollateralization in the event of a depeg event. With hyUSD, yields are a function of protocol’s design, governance, and integrations — and it’s working, as evidenced by native asset basket averaging 7.76% over the last 30 days plus extra yield opportunities on Beefy (45%), Yearn (40%) and Aerodrome (44%).

2. WAGBI (We’re All Gonna Beat Inflation)

Worldwide, there are seven countries with an inflation rate higher than 50%, and 23 countries where it exceeds 20%. The cost to send a $200 international remittance can be as much as $8 to $34 depending on the send/receive corridor. Getting credit may depend on the gray markets and sometimes results in unfair loans, data theft, harassment, and even physical harm. We believe stable currency is a human right. It’s clear that the need for safe, low-fee, stable money has never been more important. hyUSD offers holders peace of mind by outpacing inflation in over 100 countries — whether you’re in Nigeria or Argentina or the United States. Stable currency is a human right.

3. RSR overcollateralization has your back

The Reserve Rights (RSR) governance token enables holders to stake on hyUSD to participate in governance and earn a portion of revenue in exchange providing overcollateralization. hyUSD’s resilience is engineered through a layered defense system, beginning with a collateral basket that is mintable and redeemable at all times. RSR holders, incentivized to stake in return for revenue from hyUSD’s yield-bearing collateral, provide first-line overcollateralization that not only fortifies hyUSD against market instability but also against any defaults in its collateral. Moreover, predefined emergency collateral is in place to swiftly replace any faulty assets, purchased using the staked RSR. This layered, transparent approach to security — all verifiable onchain — positions hyUSD as an attractive option, especially for the risk-conscious in the DeFi community. See how the Electronic Dollar (eUSD), the first stablecoin deployed on the Reserve protocol, proved its resilience during an actual depeg event in 2023.

4. Get in, get out (no middlemen)

During a bank run or black swan event, the traditional financial system may not work as promised. To that point, hyUSD built on the Reserve protocol doesn’t make promises, but rather offers plain, immutable smart contracts that went through years of system design and rigorous testing, including seven audits and a $5M bug bounty. As a permissionless protocol, decentralization isn’t just promised but enacted, with all actions trackable and verifiable onchain. This level of transparency ensures that hyUSD genuinely embodies the principles of decentralization — unlike other stablecoins, which grapple with centralization risks and lack of transparency. It’s this commitment to real, verifiable progressive decentralization that sets hyUSD apart. Get in, get out; easy as that.

5. hyUSD is Base(d)

Near-zero fees, lightning fast, asset-backed hyUSD for all? Heck yeah. Flatcoins have been gaining particular attention since Coinbase’s invitation for devs to build a certain type of stablecoin that is decentralized and resistant to fiat-based inflation. Permissionless money should expand far beyond a few thousand DeFi power users and not surprisingly, the Base L2’s lower transaction fees will enable people who are interested in using yield bearing hyUSD to actually use it without having all benefits wiped out by gas costs.


High Yield USD (hyUSD) represents a significant step forward in the quest for a more stable, inclusive, and innovative DeFi ecosystem. With its unique blend of yield opportunities, inflation resistance, decentralized and permissionless access, and rigorous security and transparency, hyUSD on Base is poised to make it easier for anyone to access safer, more transparent yield. Mint, redeem and explore yield opportunities on hyUSD today.