> ## Documentation Index
> Fetch the complete documentation index at: https://www.dynamic.xyz/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Earn Overview

> Put wallet balances to work with yield-generating vaults and lending markets built in partnership with Aave, Morpho, and Sentora

## Introduction

Dynamic has partnered with [Aave](https://aave.com/), [Morpho](https://morpho.org/), and [Sentora](https://sentora.xyz/) to bring yield capabilities directly into your app. Put your users' stablecoin balances to work through battle-tested DeFi lending protocols without needing to navigate protocol complexity yourself.

Together with these partners, Dynamic offers curated yield opportunities that let your users deposit into vaults and lending markets, withdraw at any time, and track positions in real time. Each integration is production-ready with a quickstart guide to get you live fast.

## What you can offer your users

* **Deposit and withdraw** assets into yield vaults and lending markets with a seamless in-app experience
* **Earn yield** in the same asset your users deposit — deposit USDC, earn USDC
* **Track positions** with real-time holdings, accrued yield, and vault shares
* **Supply and borrow** against collateral in lending markets

## Partners and supported assets

### Aave

Dynamic works with [Aave](https://aave.com/), the largest decentralized lending protocol, to give your users access to V3 lending markets. Users can supply stablecoins to earn interest and borrow against their collateral.

**Supported stablecoins on Aave:**

| Asset              | Description                    |
| ------------------ | ------------------------------ |
| PayPal USD (PYUSD) | PayPal's USD-backed stablecoin |
| RLUSD              | Ripple's USD stablecoin        |
| USD Coin (USDC)    | Circle's USD-backed stablecoin |
| Tether USD (USDT)  | Tether's USD-backed stablecoin |
| USDe (USDE)        | Ethena's synthetic dollar      |

### Morpho

Dynamic works with [Morpho](https://morpho.org/) to offer vault-based yield built on the ERC-4626 tokenized vault standard. Morpho vaults are managed by professional curators who allocate capital across lending markets to optimize risk and return.

### Sentora

[Sentora](https://sentora.xyz/) curates a PYUSD vault on Morpho as part of Dynamic's earn offering. Sentora brings data-driven risk management to vault curation, giving your users access to professionally managed yield strategies.

**Available vaults:**

| Vault       | Curator | Protocol |
| ----------- | ------- | -------- |
| PYUSD Vault | Sentora | Morpho   |

## How DeFi yield is generated

DeFi vaults allocate deposited assets into onchain lending markets where borrowers pay interest to access liquidity. That interest flows back to the vault, increasing the value of deposited shares over time. Vault strategies are managed by curators who determine how capital is allocated across markets to balance risk and return.

In lending markets like Aave, users supply assets directly into the protocol rather than through a vault. Borrowers pay interest to access that liquidity, and the interest flows back to suppliers proportionally.

APY fluctuates based on borrower demand, market utilization, and the curator's allocation strategy. Some vaults also distribute additional token incentives on top of the base lending yield. All lending and borrowing happens onchain through non-custodial smart contracts.

## How yield accrues

ERC-4626 vaults track balances in shares. A deposit converts assets into shares at the current share price. As interest accrues, the share price rises — each share redeems for more of the underlying asset. Yield accrues passively with no claiming or compounding required, and withdrawals return the original deposit plus earned yield.

**Example:** A wallet deposits 1,000 USDC at a share price of 1.00 and receives 1,000 shares. When the share price reaches 1.05, those shares are worth 1,050 USDC. No new shares are minted — existing shares appreciate.

<Warning>
  Your app should make clear to end users that yield is generated via a DeFi protocol independent from the wallet provider. Users keep full control of their assets and should explicitly direct any deposit or supply action.
</Warning>

## Getting started

<CardGroup cols={2}>
  <Card title="Aave" icon="chart-line-up" href="/recipes/integrations/yield/aave">
    Supply stablecoins to Aave V3 lending markets to earn yield, borrow against collateral, and track positions.
  </Card>

  <Card title="Morpho" icon="vault" href="/recipes/integrations/yield/morpho">
    Deposit into curated Morpho vaults built on the ERC-4626 standard to earn yield on stablecoins.
  </Card>
</CardGroup>

<Info>
  Do your own research when selecting a vault or lending market. APY is variable and not guaranteed. Review the protocol documentation and understand the risks before depositing funds.
</Info>

<Warning>
  Dynamic does not control DeFi vaults, lending markets, or the underlying protocols. Vault and market information is provided for reference only and may change or be inaccurate. Earnings are generated from third-party protocols and are not guaranteed. Using vaults and lending markets involves risk, including potential loss of funds. These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to engage in any specific transaction. You are responsible for evaluating protocols and vaults at your own discretion. Dynamic does not provide investment, financial, legal, or tax advice.
</Warning>