Spark marks first major rotation from US Treasurys into regulated DeFi

As Treasury yields sink, Spark’s $100 million move into Superstate’s regulated crypto carry fund signals DeFi’s pivot toward uncorrelated yield sources.

Decentralized finance (DeFi) lending protocol Spark has rotated a portion of its treasury reserves from US government bonds into crypto-native yield strategies, signaling new approaches to onchain yield generation as Treasury returns continue to compress.

On Thursday, Spark said it allocated $100 million of its stablecoin reserves to Superstate’s Crypto Carry Fund (USCC), a regulated basis-trading fund that generates yield from price differentials between spot and futures markets across major digital assets. The fund allows DeFi protocols to earn market-neutral yield from the same derivatives markets traditionally used by hedge funds.

According to Superstate’s website, USCC manages about $528 million in assets and currently produces a 30-day yield of 9.26%.

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