Borrow eUSD against hyUSD with Morpho on Base

Leveraged stablecoin farming secured by Chronicle oracles

nagaking

Aug 09, 2024

2 min read

Borrow eUSD against hyUSD with Morpho on Base

Over the last few months, RToken lending opportunities have grown rapidly on Morpho, with multiple new markets launching on both Ethereum mainnet and Base.

In addition to Electronic Dollar (eUSD) lending and borrowing (mainnet, Base), users can now use multiple RTokens as collateral, including ETH Plus (ETH+) for wETH or eUSD on mainnet, Based ETH (bsdETH) for wETH or eUSD, and High Yield USD (hyUSD) for eUSD on Base.

One new market catching the eye of yield farmers is the hyUSD/eUSD market on Base, which can facilitate leveraged stablecoin farming using RTokens.

Imagen Currently, the hyUSD/eUSD market on Base has over $300k in eUSD available for lending, with a net negative cost to borrow via RSR incentives.

Since hyUSD emphasizes growth, directing most of its yield (81%) to RToken appreciation, while eUSD prioritizes stability, mainly incentivizing overcollateralization, the two can be used to generate relatively safe leverage with collateral (hyUSD) that appreciates against the loan (eUSD).

This can be useful for generating leveraged stablecoin yield in the same way the ETH+/wETH market can be used for leveraged LST yield.

This new market borrows from the Re7 eUSD Vault on Base and uses the Chronicle hyUSD/USD oracle to track hyUSD prices. Chronicle uses a decentralized oracle network to provide reliable, timely, and transparent price feeds throughout DeFi. Learn more about Chronicle oracles.

Imagen Real-time and historical hyUSD price data can be explored and verified via the The Chronicle, which includes price feeds for all relevant validators and their data sources.

RToken Lending Opportunities on Morpho

Visit Morpho for the latest RToken lending and borrowing options, or check out https://app.reserve.org/earn to find more RToken yield opportunities across the DeFi landscape.