Stablecoins have become one of the most widely used financial instruments. They are used for trading, payments, savings, lending and collateral across nearly every product category. Despite this adoption, the economic model for most stablecoins remains highly centralized. Large issuers such as Circle and Tether capture the full revenue generated by the underlying backing, while products that own distribution, retain users, and build demand receive none of it.

Protocols handle user acquisition, compliance overhead, liquidity management and product development, yet the economic upside from stablecoin balances accrues entirely to the issuer. The yield generated by treasuries, credit, or other backing assets does not flow back to the applications where users actually hold and use their digital dollars. That revenue could otherwise support development, liquidity incentives, TAM expansion, or reduced user fees.

The impact of this model is visible across multiple product categories:

• Traders who use centralized stablecoins as margin collateral on exchanges earn no yield on their positions. Fees and negative funding rates reduce the economic viability of holding leveraged positions for a prolonged period and leads to them being closed earlier than intended. As a result, open interest declines, spreads widen and executing trades at meaningful size becomes difficult.

• On prediction markets, stablecoin balances can remain idle for extended periods of time. Users do not earn any yield while their capital remains locked in holding shares. For longer dated markets, this represents a significant opportunity cost.

• In consumer financial products, users who keep their savings in neobanks are exposed to inflation. Stablecoin balances held for spending or transfers do not preserve purchasing power over time. This reduces long-term retention and forces the product's feature set being limited to spending use cases.

Aegis aims to address these inefficiencies.

Aegis is developing Yield-as-a-Service, which enables protocols to integrate yield directly into stablecoin user balances. Instead of holding idle dollars, users hold yield-bearing assets issued by Aegis. Protocols can benefit directly by retaining a configurable share of the generated yield.

YaaS is implemented through two assets: YUSD and jUSD. Both are dollar-denominated stablecoins, that accrue yield through strategies managed by Aegis. Integration involves a simple replacement of existing stablecoin balances with YUSD or jUSD. No staking, lockups, or additional user actions are required.

For protocols with broad distribution, yield generated from the underlying assets can become the main revenue source. Revenue grows linearly with assets held by users. This aligns protocol incentives with retention and long-term capital allocation.

• Neobanks can integrate YaaS by routing idle user deposits into YUSD or jUSD. Users continue to interact with their balances through existing interfaces. Yield accrues in the background. When users initiate payments or transfers, YUSD/jUSD are redeemed back into standard settlement assets. This enables neobanks to provide a "savings" feature, while introducing a completely new revenue stream.

• Lending markets can integrate sYUSD and sjUSD as collateral assets. Yield-bearing collateral increases borrow demand. Looping strategies become possible without introducing new primitives. Protocol revenue increases through higher utilization rates and fee generation.

• Exchanges can support YUSD and jUSD as margin collateral. Yield continues to accrue while the assets are used for leveraged positions. Yield can offset funding costs and trading fees. This increases the economic viability of holding positions for longer durations and supports sticky open interest.

• Protocol treasuries can allocate idle capital into YUSD or jUSD. Treasury balances generate yield while remaining liquid. This extends operational runway without introducing exposure to volatile assets.

• Wallet providers can integrate YaaS by offering yield on passive balances. Users deposit stablecoins directly from the wallet interface. Yield accrues without additional actions. Wallets benefit from the additional revenue, while improving user retention.

The foundation of YaaS are the yield generation strategies run by Aegis.

• YUSD is a BTC-backed digital dollar. BTC spot positions are hedged using BTC-margined perpetual futures. The strategy is a classic basis trade, yield is generated from BTC perpetual funding payments. Hedging is executed using BTC-M contracts, avoiding reliance on fiat-backed stablecoins for margin.

• jUSD is a JLP-backed digital dollar. JLP represents a basket of BTC, ETH, SOL and USDC held within the Jupiter Perps liquidity pool. Trading fees and liquidation proceeds accrue to JLP as yield. Aegis hedges the volatile assets within JLP to remove price exposure while retaining revenue from trading activity and funding.

  

Custody and execution are handled through institutional custody and OES setups. Collateral is held with regulated custodians such as Copper, with assets remaining segregated and verifiable at all times.

Hedging is executed through off-exchange settlement using ClearLoop, which allows positions to be opened and managed without pre-funding assets directly to exchanges. Settlement and margin rebalancing are coordinated through controlled execution between the custodian and CEX's. This setup limits direct counterparty exposure, reduces counterparty risk and supports continuous strategy operation under defined risk controls.

Aegis operates an insurance fund, funded by a portion of protocol yield. The IF absorbs any potential losses arising from negative funding rates, execution slippage or short-term hedging deviations. This protects user balances during volatile periods.

All strategies are monitored through a real-time proof of reserves by Accountable. Supply, reserves, hedging positions and insurance fund balances are visible to users. This enables independent solvency verification.

Running these strategies requires significant operational investment. Execution infrastructure, custody setup, risk monitoring, audits and dedicated teams are required to maintain these strategies at scale. Replicating this setup independently is complex and capital intensive.

YaaS allows protocols to avoid these costs entirely. Instead of building and operating yield strategies internally, protocols integrate YUSD or jUSD. Aegis operates execution, hedging, monitoring and risk management. Protocols focus on distribution and user experience while benefiting from a new revenue mechanism.

Stablecoins continue to grow because they scale efficiently as financial products. Yield generated by backing assets compounds as total value held increases. Protocols that give up this revenue to centralized issuers reduce their ability to grow and reinvest in product development and growth. Yield-as-a-Service allows protocols to capture this value without increasing user fees or building complex infrastructure from scratch.

Aegis is positioned to support this transition. YaaS enables protocols to increase retention, generate sustainable revenue and offer more competitive financial products using existing stablecoin TVL.

Protocols interested in learning more about Yield-as-a-Service can visit:
https://aegis.im/yield-as-a-service

Disclaimer: This article is provided for informational and educational purposes only. It does not constitute investment advice, financial advice, legal advice or a recommendation to buy, sell or hold any asset or engage in any specific strategy. Nothing in this article should be relied upon as the basis for making investment or business decisions.

Stablecoins have become one of the most widely used financial instruments. They are used for trading, payments, savings, lending and collateral across nearly every product category. Despite this adoption, the economic model for most stablecoins remains highly centralized. Large issuers such as Circle and Tether capture the full revenue generated by the underlying backing, while products that own distribution, retain users, and build demand receive none of it.

Protocols handle user acquisition, compliance overhead, liquidity management and product development, yet the economic upside from stablecoin balances accrues entirely to the issuer. The yield generated by treasuries, credit, or other backing assets does not flow back to the applications where users actually hold and use their digital dollars. That revenue could otherwise support development, liquidity incentives, TAM expansion, or reduced user fees.

The impact of this model is visible across multiple product categories:

• Traders who use centralized stablecoins as margin collateral on exchanges earn no yield on their positions. Fees and negative funding rates reduce the economic viability of holding leveraged positions for a prolonged period and leads to them being closed earlier than intended. As a result, open interest declines, spreads widen and executing trades at meaningful size becomes difficult.

• On prediction markets, stablecoin balances can remain idle for extended periods of time. Users do not earn any yield while their capital remains locked in holding shares. For longer dated markets, this represents a significant opportunity cost.

• In consumer financial products, users who keep their savings in neobanks are exposed to inflation. Stablecoin balances held for spending or transfers do not preserve purchasing power over time. This reduces long-term retention and forces the product's feature set being limited to spending use cases.

Aegis aims to address these inefficiencies.

Aegis is developing Yield-as-a-Service, which enables protocols to integrate yield directly into stablecoin user balances. Instead of holding idle dollars, users hold yield-bearing assets issued by Aegis. Protocols can benefit directly by retaining a configurable share of the generated yield.

YaaS is implemented through two assets: YUSD and jUSD. Both are dollar-denominated stablecoins, that accrue yield through strategies managed by Aegis. Integration involves a simple replacement of existing stablecoin balances with YUSD or jUSD. No staking, lockups, or additional user actions are required.

For protocols with broad distribution, yield generated from the underlying assets can become the main revenue source. Revenue grows linearly with assets held by users. This aligns protocol incentives with retention and long-term capital allocation.

• Neobanks can integrate YaaS by routing idle user deposits into YUSD or jUSD. Users continue to interact with their balances through existing interfaces. Yield accrues in the background. When users initiate payments or transfers, YUSD/jUSD are redeemed back into standard settlement assets. This enables neobanks to provide a "savings" feature, while introducing a completely new revenue stream.

• Lending markets can integrate sYUSD and sjUSD as collateral assets. Yield-bearing collateral increases borrow demand. Looping strategies become possible without introducing new primitives. Protocol revenue increases through higher utilization rates and fee generation.

• Exchanges can support YUSD and jUSD as margin collateral. Yield continues to accrue while the assets are used for leveraged positions. Yield can offset funding costs and trading fees. This increases the economic viability of holding positions for longer durations and supports sticky open interest.

• Protocol treasuries can allocate idle capital into YUSD or jUSD. Treasury balances generate yield while remaining liquid. This extends operational runway without introducing exposure to volatile assets.

• Wallet providers can integrate YaaS by offering yield on passive balances. Users deposit stablecoins directly from the wallet interface. Yield accrues without additional actions. Wallets benefit from the additional revenue, while improving user retention.

The foundation of YaaS are the yield generation strategies run by Aegis.

• YUSD is a BTC-backed digital dollar. BTC spot positions are hedged using BTC-margined perpetual futures. The strategy is a classic basis trade, yield is generated from BTC perpetual funding payments. Hedging is executed using BTC-M contracts, avoiding reliance on fiat-backed stablecoins for margin.

• jUSD is a JLP-backed digital dollar. JLP represents a basket of BTC, ETH, SOL and USDC held within the Jupiter Perps liquidity pool. Trading fees and liquidation proceeds accrue to JLP as yield. Aegis hedges the volatile assets within JLP to remove price exposure while retaining revenue from trading activity and funding.

  

Custody and execution are handled through institutional custody and OES setups. Collateral is held with regulated custodians such as Copper, with assets remaining segregated and verifiable at all times.

Hedging is executed through off-exchange settlement using ClearLoop, which allows positions to be opened and managed without pre-funding assets directly to exchanges. Settlement and margin rebalancing are coordinated through controlled execution between the custodian and CEX's. This setup limits direct counterparty exposure, reduces counterparty risk and supports continuous strategy operation under defined risk controls.

Aegis operates an insurance fund, funded by a portion of protocol yield. The IF absorbs any potential losses arising from negative funding rates, execution slippage or short-term hedging deviations. This protects user balances during volatile periods.

All strategies are monitored through a real-time proof of reserves by Accountable. Supply, reserves, hedging positions and insurance fund balances are visible to users. This enables independent solvency verification.

Running these strategies requires significant operational investment. Execution infrastructure, custody setup, risk monitoring, audits and dedicated teams are required to maintain these strategies at scale. Replicating this setup independently is complex and capital intensive.

YaaS allows protocols to avoid these costs entirely. Instead of building and operating yield strategies internally, protocols integrate YUSD or jUSD. Aegis operates execution, hedging, monitoring and risk management. Protocols focus on distribution and user experience while benefiting from a new revenue mechanism.

Stablecoins continue to grow because they scale efficiently as financial products. Yield generated by backing assets compounds as total value held increases. Protocols that give up this revenue to centralized issuers reduce their ability to grow and reinvest in product development and growth. Yield-as-a-Service allows protocols to capture this value without increasing user fees or building complex infrastructure from scratch.

Aegis is positioned to support this transition. YaaS enables protocols to increase retention, generate sustainable revenue and offer more competitive financial products using existing stablecoin TVL.

Protocols interested in learning more about Yield-as-a-Service can visit:
https://aegis.im/yield-as-a-service

Disclaimer: This article is provided for informational and educational purposes only. It does not constitute investment advice, financial advice, legal advice or a recommendation to buy, sell or hold any asset or engage in any specific strategy. Nothing in this article should be relied upon as the basis for making investment or business decisions.