Solstice Finance has integrated its yield-bearing stablecoin, eUSX, as a collateral type on Kamino, a Solana-based lending platform. This move makes Solstice's delta-neutral strategies, which have attracted over $200M in total value locked (TVL), fully composable within the Solana DeFi ecosystem.

The core of the integration allows users to deposit eUSX, which earns a yield of approximately 8% APY, and borrow other assets against it. This functionality unlocks more advanced DeFi strategies, such as leveraged looping, where users can repeatedly borrow and deposit to amplify their yield exposure. Solstice's synthetic stablecoin, USX, has grown to become the fifth-largest stablecoin on Solana.

Solstice's ecosystem centers on two assets: USX, a USD-pegged stablecoin, and eUSX, its interest-bearing counterpart that appreciates as the protocol's delta-neutral vaults generate returns. The strategies are designed for stability and are backed by multi-sig governance and custody solutions from Copper and Ceffu.

This collaboration signals a growing trend in DeFi where yield-bearing assets are used as productive collateral, enhancing capital efficiency. To incentivize adoption, users supplying USX or eUSX on Kamino will earn Solstice's on-chain rewards, called Flares.