That number is now 44.57%. For context, @USDai_Official 's base staked rate is 8.57% APY. Nothing unusual is happening. It's tranching at work: as coverage gets closer to its defined floor, utilization rises, directing more yield to Junior.

USDai opened a new borrow market on Morpho. Max loop that strategy and you can earn 36.38%. Wild number. However, @roycoprotocol 's Junior on the same asset, announced yesterday, is paying 37.65%. Higher, and without the negative carry risk that comes with looping and unwinding it yourself. Same underlying exposure, a couple of clicks instead. The stablecoin itself is also growing fast. @USDai_Official 's own numbers put the stablecoin at $550M in TVL now. Amazing comeback.

There's value in building a long-term relationship with an auditor. @tomer_ganor didn't just audit Royco's code, he was involved in the design itself. This level of architectural context is impossible for a fresh auditor to replicate by just looking at a finished product.

New episode of Royco Talks: @tomer_ganor audited the design and code behind Royco Day. In this episode, Tomer sits down with @ShivaanshKapoor, CTO, and @ankurdubey521, head of security. They walk through how it worked, and why the design was imperative. This is a must watch.

Most people see tranching as a product. @JoeWaitOfficial sees it as a building block that can be combined with lending and looping into a single position. Royco Day makes that composability possible. @EmberProtocol @llamalend @ResupplyFi Let’s make it happen.

And this is where it gets interesting. More Royco markets means more SLPs, which means more demand for sr-srRoyUSDC liquidity. That liquidity helps Royco’s markets scale, while giving frxUSD a bigger role across the ecosystem.

On Royco, deposits and withdrawals are visible for every market, on both tranches and at all times. In July, withdrawals from the @Neutrl market started increasing sharply. It caught our attention, and anyone could see it happening.

How does the SLP actually work? The Senior Liquidity Provider is what turns Senior Shares into instantly tradeable assets. Here's how it's built, its rules, and what makes it different 👇

The SLP pools are launching on Balancer V3, using Gyroscope’s E-CLP pool type. We chose it for its liquidity profile and security. Balancer V3 has been extensively audited, is monitored live, and is backed by a $1M bug bounty. Full security breakdown from @Balancer 👇

Livestream this Thursday. We’ll dive into how Royco Dawn transforms risk through tranches and how Royco Day will transform liquidity. Hosted by @xerberus, a leading risk firm. Their rigor is exceptional, with some of the strongest risk models in DeFi. See you there!

Yield, safety, liquidity. Every DeFi product makes you pick two. Royco Day, is a serious attempt at all three at once. Here's how it works👇 First, the core idea: Risk tranching = Splitting a pool of yield-bearing assets into layers that absorb losses in a fixed order. - Junior layer eats losses first and earns extra yield for standing in front. - Senior layer sits behind and gives a slice of its yield to pay for it, and only takes a hit once junior is fully wiped out. Same pool, two risk profiles: total risk stays the same, it just gets moved onto the party being paid to hold it. ( just like the PRJX pools i shared on a post earlier today) So why does DeFi need this? 1. Tranching lets 2 types of investors hold the same pool at different risk levels. ( gambler + investor ) 2. in 2008 senior bondholders learned their buffer was too thin only after it was gone. - > Royco Dawn enforces the loss waterfall by smart contract and publishes every market's coverage ratio on-chain, so you can watch the buffer in real time. Royco Dawn solved protection, but it did nothing for liquidity: a protected position in an RWA strategy that settles T+7 or T+30 still waits that long to exit. Safely stuck capital... Day is the fix. It adds a third tranche, the SLP: an AMM pool pairing Senior Shares with a stablecoin. Senior holders who want out swap through the pool instantly instead of joining the redemption queue, and Senior pays the SLP a liquidity premium out of its yield, the same way it pays Junior for first-loss cover. Protection and liquidity become two separate dials an issuer can configure, both contract-enforced. @roycoprotocol has been in the @xerberus register for a while (rated A+ as of our July evaluation), but this was the first time I personally went this deep into risk tranching and what Dawn and Day actually do. One thing I'll be watching as Day goes live: SLP depth. Instant exit holds up to the size of the pool. In a crowded exit the queue converts into slippage, and once Senior Shares get looped as collateral, that single liquidity assumption carries the whole stack. A must read for anyone allocating to on-chain yield 👇

Yield-bearing assets can offer attractive returns while remaining constrained by T+1/T+30 redemptions and withdrawal queues. @roycoprotocol Day adds a liquidity layer that enables instant exits while keeping the underlying strategy intact. So how does Royco Day address this? — ► The Liquidity Problem Yield-bearing assets can offer attractive returns, but delayed redemptions limit how easily they can move through DeFi. - T+1 to T+30+ redemptions - Withdrawal queues - Observation periods Dawn protects Senior through risk tranching, while the underlying asset still determines when holders can redeem. Royco Day addresses this gap with secondary-market liquidity for Senior holders. — ► Day Adds a Liquidity Layer Royco Day introduces the Senior Liquidity Provider (SLP) as a third layer alongside Senior and Junior. Senior + Junior → Risk protection Senior + Junior + SLP → Risk + liquidity SLP = AMM pairing Senior Shares with stable assets ↓ Senior holder swaps → receives stable asset → exits instantly The underlying strategy stays untouched, allowing Senior holders to exit without waiting for redemption. — ► Why SLP Over a Traditional AMM? SLP is purpose-built for Senior Shares, creating dedicated secondary-market liquidity around the protected asset. SLP capital holds Senior-equivalent covered exposure and ranks pari passu with Senior on risk. Senior pays SLP a liquidity premium, giving liquidity providers an economic return for supporting instant exits. — ► Configurable by Design Royco Day lets issuers configure protection and liquidity based on the needs of each underlying asset. ➢ Risk-focused: Senior + Junior → Downside protection ➢ Liquidity-focused: Senior + SLP → Instant liquidity ➢ Full-stack: Senior + Junior + SLP → Protection + liquidity — Royco Day separates risk and liquidity into market-specific parameters enforced on-chain. Minimum Coverage prices protection through Junior, while Minimum Liquidity prices exit capacity through SLP. The bigger opportunity is productive liquidity, where SLP capital can earn yield, trading fees, and liquidity premiums.