Some correction on @matt_levine report on @SteakhouseFi / Coinbase integration. You don't earn the stablecoin yield (or rewards) AND the lending yield when you lend a stablecoin on a repo market. Indeed, if the stablecoin is borrowed, it is no longer yours. Therefore lending protocols need to earn at least the stablecoin yield for a lending market to make sense (think of it as SOFR = DeFi repo rate, vs IORB = native stablecoin yield). Like TradFi there are some inefficiencies/frictions so it is not 100% accurate. So when you are with USDC in a lending pool, you are "lending" partly to Circle (what is not borrowed) and partly to the borrowers (what is borrowed). The second part keep the credit risk of Circle as USDC it is the unit of account of the loan. https://newsletters.feedbinusercontent.com/8dc/8dc72c6d05e284947a2a3e6f750cfe37b2dfa452.html#:~:text=Stablecoin%20lending(Sébastien Derivaux)