Decentralized lending platform Spark has allocated $100 million of its stablecoin reserves to Superstate’s Crypto Carry Fund (USCC).

“Spark, responsible for generating yield for the $9B USDS liquidity reserve, is putting collateral into USCC to capture higher crypto yield,” announced Superstate on X. 

The decision was prompted by a significant drop in U.S. Treasury yields, which slipped to about 3.976%, their lowest in six months. Spark had primarily relied on tokenized U.S. Treasury products, such as BlackRock’s BUIDL and Franklin’s FOBXX, for managing its reserves.

This story is an excerpt from the Unchained Daily newsletter.

The USCC fund manages over $528 million in assets and generates returns utilizing spot-futures basis trading in major digital assets like bitcoin and ether. 

Over the last 30 days, USCC has reported annualized returns of about 8% to 9%, which is significantly higher than current Treasury yields.