Coinshift’s Yield Token Surges to $113M Just 4 Months After Launch

Coinshift’s yield-bearing stablecoin, csUSDL, has quickly crossed $113 million in total value locked, according to the company’s latest announcement. The token is built on top of USDL, a fully backed and FSRA-regulated stablecoin issued by Paxos International. It is live on Ethereum and already integrated across several major DeFi protocols, including Morpho, Pendle, Gearbox, and others.

csUSDL TVL and Estimated APY, source: conishift.global

csUSDL isn’t a typical stablecoin. It acts as a receipt token representing a deposit of wrapped USDL (wUSDL) into the Coinshift USDL Morpho Vault, which is curated by Steakhouse Financial. Steakhouse Financial, known for its work on stablecoin and real-world asset strategies, including MakerDAO’s $2 billion RWA program.

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Wrapper stablecoins represent claims on a base stablecoin while layering in additional functionality—most often yield strategies, governance mechanics, or access to DeFi vaults. Instead of holding passive assets like USDC or DAI directly, users hold a tokenized position that may accrue yield or provide other benefits on top of the underlying stablecoin.

This setup allows csUSDL to generate yield from three primary sources: interest from real-world assets like U.S. Treasury Bills, DeFi lending activity, and token-based rewards. These earnings are either automatically compounded into the token’s value or can be claimed by users.

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Unlike major stablecoins such as USDC or USDT, which retain all reserve-generated interest as issuer profit, second-category stablecoins like USDL or USDM are designed to pass a portion of that yield directly to holders. This structure—more aligned with regulated money-market fund shares—means the issuer doesn't need to engage in aggressive yield farming. Instead, they function more like yield-distributing custodians, reducing regulatory exposure and technical complexity.

At present, csUSDL offers an estimated annual yield of around 11.24%. Roughly 5% of this comes from the base yield on USDL, which earns interest from a portfolio of Treasury bills and cash equivalents. That yield is updated daily and reflected directly in the csUSDL share price.

The remaining yield comes from lending activity and rewards. Coinshift deploys the USDL deposits into Morpho, where they are lent to borrowers using overcollateralized assets such as wstETH or cbETH. Borrowers pay interest in real time, currently contributing around 2% APY, though this can fluctuate. On top of that, csUSDL holders earn SHIFT—Coinshift’s native governance token. Five percent of the total SHIFT supply is set aside for early csUSDL users.

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Wrappers like csUSDL favor yield bearing stablecoins like USDL as their base because they provide a yield floor without requiring the wrapper issuer to manage the reserve themselves. This enables composable yield stacking: Coinshift starts from the ~5% USDL base yield and adds protocol-native lending and token incentives on top. That’s both capital efficient and regulatorily cleaner than running a fund or taking on custody risks directly.

Getting csUSDL is fairly straightforward. Users can swap USDC for csUSDL directly on CowSwap. Alternatively, they can buy USDL, wrap it into wUSDL, and deposit it into the Morpho vault to mint csUSDL. The token is also remarkably user-friendly. There is no KYC or KYB required. Just swap into csUSDL and you start earning immediately—no staking, no complex setup. Balances increase daily.

While the SHIFT token has not yet launched, early users are earning points that will eventually convert to the token. Some community members on X (formerly Twitter) have estimated that these rewards could push real yields to between 400% and 900% APY over a matter of months. Given that the underlying strategy carries little to no price volatility, csUSDL has naturally attracted a large crowd of airdrop-focused users.

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The distinction here is important: although csUSDL is technically a stablecoin, its primary utility is yield generation, not payments. As such, it belongs more to the category of on-chain investment products than digital cash. Tokens like this occupy a growing niche in DeFi: semi-liquid savings wrappers backed by credible reserves but designed for yield optimization rather than spending velocity.

Founded as a treasury and finance automation platform for DAOs and Web3 companies, Coinshift has built a comprehensive suite of tools that include on-chain payments, accounting, budgeting, and investment management. Protocols like Gitcoin, Aave, UMA, and Zapper—together managing over $1 billion—use Coinshift’s infrastructure to streamline treasury operations.

In 2022, Coinshift raised $17.5 million in a Series A round led by investors including Tiger Global, Sequoia, ConsenSys, and Polygon.

FYI: learn more about wrapped tokens