Kamino Finance has increased the global borrowing cap for PayPal’s stablecoin, PYUSD to $20 million. This expansion allows users to borrow PYUSD by using any collateral asset they hold on the platform. Notably, the PYUSD borrow rate remains consistent, even at a utilization rate of 80%. This provides a stable borrowing environment regardless of the loan amount.
1/ Global $PYUSD borrow caps have just been raised to $20M on Kamino — which means you can use ANY collateral assets to borrow!
Significantly, the $PYUSD borrow rate is designed to remain flat regardless of borrow size — up to 80% utilization👀 pic.twitter.com/jiyya3WWtw
— Kamino (@KaminoFinance) August 28, 2024
The PYUSD borrowing cap in the Ethena Labs market has also been raised to $10 million. This enables users to leverage their exposure with USDe and sUSDe. The current PYUSD borrow rate in this market sits at 2.07%, making it an appealing option for yield seekers looking to capitalize on low borrowing costs.
The borrowing capacity for PYUSD is divided across two primary markets, offering various collateral choices. On the “Main” market, “Any Assets” has a borrowing capacity of $20 million, with SOL offering a larger capacity of $100 million.
In the Ethena market, sUSDe and USDe have a combined capacity of $10 million. The borrowing APYs are 4.06% for both Any Assets and SOL, while sUSDe and USDe offer 2.07%.
Source: Kamino
Investors have shown a mixed reaction to these developments. Notably, on his X account, influencer Easy highlighted that PYUSD offers stablecoin holders an attractive opportunity to earn APY on platforms like Kamino Finance, ranging from 13.8% to 16.4%. Easy encouraged stablecoin holders, particularly USDC and USDT “maxis,” to consider swapping to PYUSD for better returns.
You’re Missing Out On Free Money…
If you have stable coins and you’re not taking advantage of $pyUSD then you better change that.
I know that when something sounds too good to be true it usually is, but I am a fan of PayPal’s stable coin option, yes because it is on Solana,… pic.twitter.com/IAZfAiMNfG
— Easy (@EasyEatsBodega) August 27, 2024
According to data from Easy, the PYUSD-USDC pool offers an APY of 13.80%, while a PYUSD-USDT pool provides a slightly higher return of 14.70%. The highest yield is found in the PYUSD-USDE pool, at 16.42%.
However, some community members raised security concerns. Investor Orangie expressed worries about potential security risks, emphasizing the need for a smooth withdrawal process in case of an exploit. Easy acknowledged the risk but expressed confidence in Kamino Finance due to its positive track record so far.