Following our last letter on RWAs, StaFi is taking another solid step forward. Today, we’re excited to introduce one of the most important new modules in the LSaaS product suite: the Stablecoin LST Stack.
This isn’t just another stack—it represents a major milestone in expanding the vision of Liquid Staking as a Service (LSaaS) into the world of payments, real-world assets, and on-chain finance. With this launch, we’re showing that StaFi is continuously building, pushing the boundaries of what’s possible with staking infrastructure.
Why Stablecoins?
Stablecoins are already one of the biggest success stories in crypto.
They represent hundreds of billions in market cap, power most of on-chain DeFi, and are the most actively transacted assets on public blockchains—often surpassing Visa or MasterCard in daily transaction volume. But despite their popularity, stablecoins are underutilized when it comes to yield.
Unlike PoS tokens that can be staked for rewards, holding stablecoins like USDT or USDC offers zero native yield. This is a missed opportunity—especially when those stablecoins are backed by interest-bearing assets like U.S. Treasury Bonds.
StaFi saw this gap—and we built the solution.
What is the Stablecoin LST Stack?
Just like ETH or DOT can be staked in StaFi to mint rETH or rDOT, the Stablecoin LST Stack allows users to stake their stablecoins (e.g., USDC) and receive a liquid staking token (LST) in return. That token not only maintains liquidity, but also earns passive yield.
Here’s how it works:
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Users stake stablecoins (e.g. USDC) via protocol built with StaFi LSaaS
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Stablecoins are deployed into yield-bearing RWA protocols such as Ondo Finance, Centrifuge, or Mountain Protocol (which buy U.S. Treasuries or short-duration credit)
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Protocol issues a liquid token (e.g. rUSDC) representing the staked position and yield claim
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rUSDC can be used across DeFi, just like any other LST
This stack brings composability and capital efficiency to stablecoins for the first time.
Why It Matters
The Stablecoin LST Stack is powerful because it bridges multiple major trends:
1. It aligns with the RWA narrative
RWA is one of the most important macro narratives of 2024–2026. As Wall Street embraces tokenized T-bills and structured credit, on-chain stablecoins backed by RWAs will dominate.
StaFi’s Stablecoin Stack directly rides this wave—connecting on-chain stablecoin capital with off-chain yield sources.
2. It creates DeFi-native yield
USDC in a wallet earns 0%.
rUSDC in DeFi earns real yield while retaining liquidity.
That’s game-changing for every DeFi user and protocol that holds idle stablecoins.
3. It uses existing LSaaS infrastructure
StaFi has 6+ years of experience building LSTs for PoS tokens. Now we’re reusing and adapting that same battle-tested infrastructure for stablecoins—accelerating innovation with lower risk.
4. It opens new markets
This isn’t just for ETH whales or AVS operators. This is for everyone using stablecoins—DeFi protocols, treasuries, institutions, and end users.
What About the Risks?
Like all yield strategies, this isn’t risk-free.
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Rate risk: U.S. Treasury yields are falling as the Fed cuts rates, which may reduce base yield for stablecoin LSTs
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Protocol risk: Yield is derived from off-chain RWA protocols (Ondo, Centrifuge, etc.), so smart contract, custody, or regulatory risk applies
The upside: StaFi’s modular LSaaS infrastructure enables rapid iteration. We can integrate higher-yield strategies, plug into DeFi, or launch new modules to enhance returns—just like we evolved LSTs from simple staking to restaking, MEV, and beyond.
What’s Next?
We’re actively seeking partners to launch the first stablecoin LST protocols powered by StaFi LSaaS. These could be:
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Treasury-backed stablecoins that want to offer yield
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RWA protocols that want a liquid staking interface
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DeFi apps looking to issue rUSDC, rUSDT, or fiat-backed tokens like rSGD, rEUR, etc.
The Stablecoin LST Stack is now production-ready, and we hope to see the first integrations go live soon.
Just like Vouch, Chaos, Gimo, and Hito adopted LSaaS in the PoS world, we’re excited to onboard the first wave of stablecoin-native partners into the LSaaS ecosystem.
Closing Thoughts
We built StaFi to make capital more efficient. First with staking. Now with stablecoins.
With this Stablecoin LST Stack, we’re bridging the gap between DeFi, TradFi, and RWAs, and showing how one unified staking infrastructure can power multiple verticals—from security to yield, from AI to payments.
To our community:
We’re still building. We’re building faster than ever.
LSaaS is evolving. FIS has real utility.
The best is ahead.
Let’s stake the future—together.
About StaFi
StaFi is a leading Liquid Staking infrastructure provider and protocol for PoS chains. Its Liquid Staking as a Service (LSaaS) framework enables developers to create Liquid Staking Tokens (LSTs) and Liquid Re-staking Tokens (LRTs) across ecosystems like ETH, EVM, BTC, CosmWasm, and SOL. By issuing rTokens (e.g., rETH, rMATIC, rBNB), StaFi unlocks the liquidity of staked assets, allowing users to earn staking rewards while retaining the flexibility to engage in DeFi. With support for major blockchains such as Ethereum, Solana, Polygon, BNB Chain, and Cosmos, StaFi bridges liquidity and security in Proof-of-Stake networks.
Read more about StaFi 2.0.
About LSaaS
LSaaS is a paradigm shift offering developers a robust framework to build their own Liquid Staking Tokens (LSTs) and Liquid Re-staking Tokens (LRTs). Compared to Rollup as a Service(RaaS), RaaS projects, like Altlayer, Dymension and Conduit, are primarily concerned with improving blockchain scalability and efficiency through layer 2 solutions.
For a deeper comparison and analysis, you can check out the full article: Read here.