#What is EtherFi's New Vault for Stablecoins?
EtherFi has launched a new investment opportunity called EtherFi Liquid RWA. This program focuses on providing investors with access to earning institutional-grade rewards on stablecoins through a partnership with Plume.
With an investment of $100 million into Plume, EtherFi enables over $6 billion in customer deposits to explore yield opportunities previously reserved for larger investors. The new vault has a cap of $25 million and currently boasts an annual percentage yield (APY) of 7.25%, which is variable and not guaranteed.
The EtherFi Liquid RWA product opens doors to yield markets that were traditionally inaccessible. It includes investment options such as BlackRock’s iShares AAA CLO ETF, Fidelity Total Bond ETF, and FalconX’s Credit Pool. Investors now have options for diversifying their portfolios with high-quality fixed income and institutional credit.
#How Does EtherFi Liquid RWA Enhance Earning Potential?
Not only does this vault provide a way to earn from stablecoins, but it also allows users to utilize their assets as spending collateral on EtherFi Cash with a loan-to-value ratio of 70%. This unique feature enables users to maintain their earning potential while also unlocking additional spending power through related cash products.
#What are EtherFi's Plans for Onchain Banking?
The launch of EtherFi Liquid RWA is part of EtherFi’s broader initiative to innovate in onchain banking. Earlier this year, the company announced plans to migrate EtherFi Cash to Optimism's OP Mainnet. This move aims to enhance transaction speed and scalability for its services, thus benefiting a wider range of customers.
In summary, EtherFi Liquid RWA represents a significant leap forward in financial accessibility, promising institutional-grade rewards for stablecoin holders.