Polygon Brings Brazil's High-Yield Selic Rate On-Chain with BRZ Lending Markets

Featherlend has launched two on-chain lending markets for BRZ, the Brazilian real stablecoin issued by Transfero, on the Polygon network. These markets allow corporate treasuries to access Brazil's benchmark Selic interest rate of 13.75%. The launch aims to bring a structured on-chain route to this high-yielding rate, which was previously inaccessible to companies holding reais.

The two markets are called TESOURO and sfrxUSD. Both use BRZ as the only loan asset, so lenders earn a rate paid in reais by borrowers. The difference between the two is the collateral: TESOURO accepts tokenized short-dated Brazilian treasury notes issued by Etherfuse, while sfrxUSD accepts Frax's yield-bearing dollar token.

Feather curates both markets, setting liquidation thresholds and monitoring solvency, while Morpho supplies the immutable, isolated market contracts. BRZ has held its 1:1 peg to the real since 2019 through controlled minting and burning, and now runs on more than 16 networks.

The launch extends the same DeFi lending infrastructure that has driven Morpho's expansion into Asian markets. At launch, Feather reported a collateral yield near 12.67% against a borrow rate near 8.76%. Lenders face no liquidation, but they underwrite collateral quality and can hit withdrawal limits when utilization runs high.