Kamino Finance has increased the global borrowing limit for PayPal’s stablecoin, PYUSD, to $20 million. This expansion allows users to borrow PYUSD using any collateral asset they hold on the platform. Notably, the PYUSD borrowing rate remains stable, even with an 80% utilization rate. This ensures a stable borrowing environment regardless of the loan amount.
1/ The global $PYUSD borrowing limit has just been raised to $20 million on Kamino – meaning you can use ANY collateral to borrow!
Notably, the $PYUSD loan rate should remain the same regardless of the loan size — up to 80% usage👀 pic.twitter.com/jiyya3WWtw
— Kamino (@KaminoFinance) August 28, 2024
The PYUSD borrowing limit on the Ethena Labs market has also been increased to $10 million, allowing users to leverage their positions with USDe and sUSDe. The current PYUSD borrowing rate on this market is 2.07%, making it an attractive option for those looking for yield and wanting to take advantage of low borrowing costs.
The borrowing capacity for PYUSD is divided into two main markets offering different collateral options. On the “Main” market, “Any Asset” has a borrowing capacity of $20 million, while SOL offers a larger capacity of $100 million.
In the Ethena market, sUSDe and USDe have a combined capacity of $10 million. The annual interest rate on loans is 4.06% for both Any Assets and SOL, while sUSDe and USDe offer 2.07%.
Investors have had mixed reactions to these developments. In particular, 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, especially USDC and USDT “maxi,” to consider trading for PYUSD for higher returns.
You are missing out on free money…
If you have stablecoins and are not taking advantage of $pyUSD, you might want to change that.
I know when something sounds too good to be true it usually is, but I’m a fan of PayPal’s stablecoin option, yes, because Solana has it,… pic.twitter.com/IAZfAiMNfG
— Easy (@EasyEatsBodega) August 27, 2024
According to Easy, the PYUSD-USDC pool offers an annualized return of 13.80%, while the PYUSD-USDT pool provides a slightly higher return of 14.70%. The highest return is seen in the PYUSD-USDE pool at 16.42%.
However, some community members have expressed concerns about security. Investor Orangie expressed concerns about potential security risks, emphasizing the need for a smooth withdrawal process in the event of an exploit. Easy acknowledged the risk, but expressed confidence in Kamino Finance due to its positive track record to date.
Disclaimer: The information provided in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of using the content, products or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
