# R2 Vaults Updated: A Refined Yield Upgrade for the Next Phase

By [R2](https://paragraph.com/@r2labs) · 2025-12-24

#defi, #rwa, #realyield

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We’re excited to announce an update to the R2 Vaults, further refining our yield architecture to better serve different user needs while staying true to our core principle: pure, transparent, real-world asset yield on-chain.

**This update will officially go live with the launch of Season 2 (S2).**

With this update, R2 now offers two clearly differentiated vaults:

*   **sR2USD**: a high-liquidity, low-risk core yield vault
    
*   **sR2USD+**: a season-based enhanced yield vault for long-term capital
    

Both vaults are backed entirely by **institutional-grade RWAs**, with no reliance on leverage or token inflation for base yield.

* * *

**sR2USD — Core Stable Yield Vault**
====================================

**Target APY:** ~5.0% 

sR2USD is designed as the core, low-risk yield vault for users seeking stable returns, high liquidity, and predictable redemption.

### **Portfolio Composition**

**Asset**

**Allocation**

**Role**

VBILL

25%

Liquidity anchor & fast redemption buffer

USCC

40%

Liquid yield enhancement (T+3)

STAC

25%

Stable, predictable cash flows (T+3)

MB (short-duration, cash-flow-backed)

10%

Short-term yield enhancement

### **Key Characteristics**

*   **Risk Profile:** Low
    
*   **Liquidity:** High
    
*   **Redemption:** Early redemption available (T+3) 
    
*   Yield Distribution: 90-day season-based
    

sR2USD is optimized to function as an on-chain equivalent of a high-quality cash management product, combining liquidity, stability, and real yield.

* * *

**sR2USD+ — Enhanced Yield Season Vault**
=========================================

**Target APY:** ~8.0% – 10.0%

sR2USD+ is built for users willing to commit capital for a full season in exchange for higher, diversified RWA yield exposure.

### **Portfolio Composition**

**Asset**

**Allocation**

**Role**

VBILL

5%

NAV stability & minimal liquidity buffer

Apollo Acred

20%

Long-duration, institutional-grade yield

USCC

35%

Liquid yield enhancement (T+3)

STAC

10%

Stable, predictable cash flows (T+3)

MB (short-duration, cash-flow-backed)

30%

Short-to-mid duration yield enhancement

### **Key Characteristics**

*   **Risk Profile:** Low – Medium
    
*   **Liquidity:** Medium
    
*   **Redemption:** Standard redemptions occur at season end. A limited fast-track option may be available based on a dedicated liquidity buffer. Fast-track withdrawals before the current season completes may forfeit current cycle yield.
    
*   Yield Distribution: 90-day season-based
    

sR2USD+ introduces controlled duration and credit exposure to unlock higher returns, while maintaining transparency and conservative risk management.

* * *

**Why This Update Matters**
===========================

*   **Clear product differentiation:** users can now choose between liquidity-first or yield-maximizing strategies
    
*   **Pure RWA yield:** no leverage, no synthetic yield engineering
    
*   **Institutional-grade construction:** diversified assets, clear cash-flow paths, predictable redemption
    
*   **Season-based design:** aligns capital duration with underlying asset behavior
    

This updated structure strengthens R2’s position as a **real yield infrastructure layer**, bridging institutional RWAs with on-chain accessibility.

We’ll continue to iterate on asset composition, reporting transparency, and partner integrations, always with the goal of making **real-world yield simple, verifiable, and globally accessible**.

Stay tuned for upcoming season details and performance updates.

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*Originally published on [R2](https://paragraph.com/@r2labs/r2-vaults-updated-a-refined-yield-upgrade-for-the-next-phase)*