# Introducing: The Stable Flan USD — Smart Yield for Stablecoins

By [BakerFi](https://paragraph.com/@bakerfi) · 2025-06-25

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In a world where DeFi often means volatility, we built something different. **The Stable Flan USD** is our new AI-powered vault strategy, focused entirely on **stablecoins,** offering you a way of earning optimized returns without having to interact with 100s of clunky DeFi protocols.

No research on stables. No new APYs to chase. Just one-click access to a diversified, actively managed vault.

**How It Works**
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### **1\. Deposit Your Stablecoins**

Deposit **USDC** into our recipe.

In return, you receive **sfUSD**, the **“Recipe Tokens”**, a tokenized receipt that reflects your proportional share of the vault. This token can be used to track your position or to redeem your assets later.

### **2\. AI Curates and Manages the Portfolio**

Behind the scenes, a custom-built **AI Agent** takes over:

*   It scans market conditions, liquidity, and token performance across multiple protocols.
    
*   It selects a **curated set of 3-5 stablecoins** (from strategies like LSD-backed tokens, lending markets, RWAs, or stablecoin yield derivatives). Examples of this include supplied USDC to Aave or Morpho, sUSDS, sUSDe, among others.
    
*   The vault rebalances periodically by swapping between tokens using the DEX with the **deepest available liquidity**, such as **Uniswap**, **Curve**, **Balancer**, or others.
    

The AI Agent’s goal? Maximize stablecoin yield while maintaining capital efficiency and minimizing risk.

### **3\. Withdrawals**

Ready to withdraw? All you have to do is just redeem your **sfUSD**.

The vault converts your share of the portfolio back into **USDC** using the available liquidity on supported DEXs.

Funds are sent directly to your wallet.

**Why Use The Stable Flan USD?**
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✅ **No active management required** — just deposit once and let the AI work.  
✅ **Optimized returns on stablecoins** — yield without volatility.  
✅ **Simple exit flow** — get back stablecoins anytime.  
✅ **Transparent and non-custodial** — everything is onchain.

**Final Notes**
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Whether you’re parking idle stablecoins or looking for safer DeFi strategies with solid returns, **The Stable Flan USD** brings smart exposure and real flexibility.

**Now live on** [bakerfi.ai](https://bakerfi.ai/)**.**

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*Originally published on [BakerFi](https://paragraph.com/@bakerfi/introducing-the-stable-flan-usd-smart-yield-for-stablecoins)*