Superform has launched a new product called SuperUSDC, designed to help users earn high yields on Circle’s stablecoin. This platform operates as a decentralized marketplace for yield protocols, allowing projects to list vaults that connect to yield opportunities on Ethereum and scaling solutions like Arbitrum or Base.

With SuperUSDC, DeFi users can enjoy automated, non-custodial yield management. This is the first product in Superform’s SuperVault line. Vikram Arun, co-founder and CEO of Superform, shared that the launch follows feedback from over 100,000 digital wallets. He mentioned, “SuperVaults is what we created in response to what was the most in-demand feature from users.”

SuperVault automatically allocates digital assets to create yield opportunities. It uses an algorithm based on data from the platform. Currently, there are 768 vaults available. The design of this product responds to user requests for a more curated selection.

In addition to the SuperVault release, Superform Labs raised $3 million in a strategic funding round led by VanEck Ventures. This marks the first investment from their $30 million fund since it was announced in October.

While Superform isn't available to U.S. residents at the moment, there is hope among lawmakers for a federal framework for stablecoins. Arun expressed optimism that regulatory changes under the new administration could enhance DeFi. He believes stablecoins could lead to a significant “gold rush on-chain” for yield opportunities.

Arun stated, “Our thesis is that we’re going to see incredible stablecoin growth.” He emphasized that future competition will focus on maximizing the utility of stablecoins.

Stablecoins are digital assets pegged to fiat currencies, like the U.S. dollar. They are often backed 1:1 by assets such as cash and U.S. Treasuries. Their use as payment methods and collateral on DeFi platforms has increased. In 2022, SEC Chair Gary Gensler compared stablecoins in DeFi to “poker chips.”

This year, stablecoins have shown impressive growth. Their total market cap has risen from $130 billion to $200 billion since January, according to DefiLlama. Tether (USDT) leads the market with a valuation of $139 billion, followed by Circle’s USDC at $41 billion.

Circle Ventures participated in Superform’s $6.5 million Seed funding round in November 2022. This round was led by Polychain Capital and included contributions from BitMEX co-founder Arthur Hayes. Arun noted that Circle became one of Superform’s largest investors during a challenging time for the crypto market after the FTX collapse.

After the significant downturn of UST and LUNA, along with issues faced by crypto lenders in 2022, some users may be cautious about projects promising high returns on stablecoins. However, Arun remains hopeful that Superform's partnership with Circle can help change this perception.

He said, “We've been burned so many times by stablecoins and yield-bearing products that aren't managed properly.” He emphasized the importance of partnering with reputable companies and creating products that anyone can verify on-chain without needing extra trust.