PANews reported on December 16th that, according to The Block, PayPal is launching a PYUSD savings vault on its decentralized lending platform Spark, providing PANews reported on December 16th that, according to The Block, PayPal is launching a PYUSD savings vault on its decentralized lending platform Spark, providing

PayPal launches PYUSD savings vault on Spark platform

2025/12/16 07:32
2 min read

PANews reported on December 16th that, according to The Block, PayPal is launching a PYUSD savings vault on its decentralized lending platform Spark, providing its stablecoin users with a new way to generate yield on their holdings at an annualized yield (APY) of 4.25%. The PYUSD savings vault's yield is pegged to the Sky Savings Rate, which is funded by revenue from the Sky protocol. PYUSD was integrated into SparkLend in September, allowing users to deposit and borrow the stablecoin. The two companies stated at the time that after seeing approximately one-fifth of their target amount deposited on the first day, they hoped to expand deposits to $1 billion. The new PYUSD savings vault could help increase PYUSD deposits on SparkLend. As part of Spark's Savings V2 product line, the vault also leverages Spark's liquidity layer, deploying stablecoin deposits onto Spark's balance sheet, including lending strategies on SparkLend.

For the PYUSD savings vault, 90% of deposits will be allocated to yield-generating strategies through the Spark liquidity layer, while the remaining 10% will be held in the contract as "instant withdrawal liquidity." Interest will be credited to depositors as "accumulated tokens" spPYUSD. Based on the vault's current composition, over 57% still holds stablecoins, 15.73% is invested in on-chain cryptocurrency lending, 10.24% in AAA-rated corporate bonds, 10.10% in over-the-counter cryptocurrency lending, 5.32% in US Treasury bonds, and the remainder in other investment strategies.

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