With the Plasma syrupUSDT vault reopening for additional deposits with a $300M cap, we wanted to share an update on recent performance, upcoming incentives, and the outlook for the period ahead.
Performance Overview
Despite widespread yield compression across DeFi and market volatility following the October drawdown, the Plasma syrupUSDT vault has delivered strong results.
Over the past two months, the vault realized a 12% annualized yield, derived from syrupUSDT underlying yield, looping yield and XPL rewards. On a go-forward basis, the vault is expected to have a 16% net APY, derived from native and looping yield as well as an exclusive 4% XPL reward over the next 30 days. Lenders in the vault after the unlock date or will benefit from exclusive XPL rewards, as well as discounted fees from Maple, Edge Capital and Midas.
In the current low-rate environment, where other vault strategies have experienced capital losses, the Plasma syrupUSDT vault continues to offer one of the most attractive risk-adjusted yields available onchain. It also provides the only way to access the Aave syrupUSDT trade on Plasma, as all Aave supply caps remain filled.
Strategy and Risk Management
The Plasma syrupUSDT vault deploys a plain-vanilla looping strategy using Aave and Fluid, two of the most established and secure lending protocols in DeFi. syrupUSDT is backed by overcollateralized loans, primarily against native BTC, providing a transparent and resilient foundation for yield generation.
Edge Capital curates and manages the vault’s strategy and risk, applying a conservative framework refined through several years of DeFi operations. The team has maintained a zero-loss track record and successfully avoided all assets affected by recent market dislocations.
Midas provides the underlying infrastructure and ensures seamless vault operation. Midas does not control or manage vault assets. All holdings are fully segregated and verifiable onchain via the following addresses:
Full details of syrupUSDT’s collateralization and backing are published on the Maple transparency page
Product Benefits
- Higher Yield Efficiency Post-Unlock As the vault’s initial lock period concludes, partial withdrawals will reduce collateral drag, improving looping efficiency and increasing effective yields for remaining LPs.
- Exclusive Access to Aave Supply Caps The vault maintains a dedicated allocation within Aave’s syrupUSDT caps, which are currently filled. This creates a scarcity advantage for LPs that new entrants cannot replicate.
- Exposure to Top-Tier Collateral and Protocols The vault’s risk exposure is limited to top-tier protocols (Aave, Fluid, Maple) and high-quality overcollateralized assets, ensuring conservative exposure even amid market stress.
- Sustainable, Transparent Yield Profile With expected returns in the 16% APY range, the vault’s yield generation is transparent and fully onchain, with no CeFi, leverage beyond looping, or opaque sources of yield.
- Proven Risk Management Edge Capital is a market leader in curation, with a long track record of maintaining conservative risk management and navigating volatility without losses, including through recent stress tests in the DeFi market.
- Pendle Integration (Coming Soon) Upcoming msyrupUSDTp markets on Pendle will enable additional DeFi utility - LPs will be able to fix yields, speculate on Plasma incentives, or provide liquidity for additional returns.
Outlook
An additional $500k in XPL rewards will be distributed over the next 30 days, lifting the expected APY to around 16%. This figure includes base DeFi yields plus 50% fee waivers from Edge Capital and Midas and a 100% waiver from Maple.
The Plasma syrupUSDT vault reopens on November 16th at 9:00am ET, with $100M in new capacity available on a first-come, first-served basis.
For questions or further details, please contact the Maple team
