Uniswap Launches Earn to Let Users Earn Yield on Idle Crypto Assets

Uniswap, the largest decentralized crypto exchange by trading volume, has launched 'Earn,' a new product that lets users earn yield on their idle crypto assets. The product is built in partnership with Morpho, the second-largest decentralized lending protocol.

Users can deposit USDC, USDT, and ether into three Gauntlet-curated Morpho vaults, where the assets are lent to borrowers through Morpho's lending markets. The interest paid by borrowers becomes the yield earned by depositors. Users keep custody of their assets and can withdraw them at any time.

'Uniswap was built to give people open, direct access to on-chain markets and Earn is a natural next step,' said Anthony Beshay, staff product manager at Uniswap. 'It gives users a simple way to put their assets to work without needing to manage concentrated liquidity positions.'

Uniswap's Earn product differs from its DualPool product, which was developed with Spark (the DeFi arm of Sky, formerly MakerDAO). The spokesperson explained that Earn is designed for users who want to earn yield through lending, while DualPool is intended for users who want to both provide liquidity and lend their assets.

The launch comes shortly after SEC Commissioner Hester Peirce said crypto vaults and on-chain lending strategies may already fall within existing federal securities laws, depending on how they are structured. Uniswap's spokesperson stated that the company 'is confident that we are acting in compliance with all applicable laws.'

Morpho has increasingly become lending infrastructure for crypto companies, with Coinbase, Robinhood, Bitwise Asset Management, and Société Générale having integrated or built products on the protocol.