KuCoin has introduced KCUSD, a yield-bearing asset that allows users to earn returns on stablecoins. The product supports subscriptions using USDT, USDC, or USDG at a 1:1 ratio. There is no fixed lockup period, and users retain the ability to redeem their funds back into the original stablecoins.
The platform offers a base annual percentage rate of up to 4%, with promotional rates reaching up to 6% for eligible participants. Rewards are compounded daily, and the system begins accruing yield starting one day after subscription.
KCUSD is integrated into the KuCoin Unified Trading Account. Eligible VIP users at level 1 and above can utilize their KCUSD balance as trading collateral while simultaneously earning yield on the capital.
The asset is backed by U.S. Treasury securities. KuCoin notes that the product is custodial and carries risks, including potential changes to APR, redemption restrictions, and counterparty risks associated with the exchange and third-party asset managers.
