Yo, short for Alde Optimizer, launched the Yoeur Vault on Friday, adding new momentum to the Euro Stablecoin trade. However, the market infrastructure is still behind. Circle's euro cross-chain liquidity is limited, causing distortions in interest rates in the borrowing and lending markets that are not found in the larger USD page stubcoin.
Yoeur is a multi-chine yield vault designed to optimize euro returns. Like Yo's previous products covering ETH, BTC and USD, Vault uses a risk-adjusted framework to allocate capital across multiple chains and strategies.
“Yotokens implements the ERC-4626 tokenization vault standard with important additions to support multi-chain architectures,” Yo Labs CEO Driss Benamour told BlockWorks. “Currently, YO deposits are on the base and support one-click deposits from multiple chains, including arbitrum, via integral routing and bridging. They actively harvest yields across multiple chains, including Ethereum, Base and Unicane.
Asked about visibility into yield locations, Benamour said: “All strategies are completely transparent and accessible through DAPP. Users can always track exactly where their assets are allocated through DAPP.”
The launch will bring the euro to an even further inch to further the sect's spotlight thanks to the weakness of the dollar. Greenbacks have been in the summer range, but have been down by about -12% since the start of the year.
Jupiter from Solana has lent the posted two-month incentive program and pushed the posted Eurc Apys by over 7%.
Aave founder Stani Kulechov repeatedly promoted a loan yield of around 5% on EURC through EURC support bases and Aave Deployments in Ethereum.
However, the Eurocarry trade remains fragmented. At Aave V3 Ethereum, EURC borrowing rates were briefly spiked to nearly 20% around 6am on Friday, falling below 8% by 11:00am. Once utilization exceeds a certain threshold, even small net borrowings can send high rates until new supplies arrive.
Source: aavescan.com
In theory, borrowers can mediate spreads – borrowing low liquidity (e.g., base) and it lends rare locations (mainnets). But in reality, filling in friction kills trade. Unlike USDC, EURC does not have a native CCTP-style burn and mint bridge, so most flows rely on swap and bridge routes or CEX rails.
Portal (Wormhole's Token Bridge) promotes euro bridging between chains after its August launch, but even the modest 10,000 euro size moves from base to Solana clock at around 33 bps and from Solana via portal to Ethereum at ~49 bps. The Ethereum Euro Bridge from the base can be made at about 22 bps, a more modest way through the Icarter.
Of course, all of these spreads increase with size, making it difficult for Coinbase, for example, to line up rates without relying on as an intermediary.
But this is advantageous for a little man who already has capitals in these chains. Jupiter's boost lifts APY in Solana, but the cost of moving and leaving funds quickly blocks the operation of hedge fund scales. Aave's mainnet spikes tend to be driven by caps and a few large wallets rather than durable demand. Risk curator Chaos Labs has moved twice to raise the EURC cap, especially on Aave's core instances.
A safe spinning between chains and strategies allows individual users to theoretical harvest what they cannot.
