High-Yielding Synthetic USDC

pikUSDC and pitUSDC are Parity’s synthetic USDC products, offering USD-pegged exposure with significantly higher yield than traditional stablecoins — powered by crypto-native yield sources.

How Yield is Generated

Yield on synthetic USDC is derived from three core mechanisms:

JLP Trading Commissions

Parity allocates capital into the JLP pool, which powers Solana’s leading Perps DEX, earning a share of trading fees and funding from perpetual traders.

Solana Basis Trade

Parity runs a delta-neutral strategy by staking SOL while shorting SOL perps. This earns:

• ~8% from staking SOL (inflation, fees, MEV)

• ~12% from funding fees on short perp positions Together, this strategy offers stable, relatively high yield USD returns.

Crypto Risk Free Rate Switching

When market-based returns fall below the prevailing USD crypto risk free rate (the baseline stablecoin yield available on blue-chip borrow-lend protocols), Parity automatically reallocates to those benchmark strategies. This includes either:

• Switching to leading DeFi lending protocols on Solana (e.g. Kamino, DRIFT)

• Alternatively, converting collateral into Franklin Templeton’s Benji Token to earn baseline yield from US Treasury Bills, via Parity’s integration agreement with Franklin Templeton

This dynamic floor ensures that Parity never underperforms what users could get from low-risk DeFi yield options.

Maintaining the $1 Peg

Parity ensures synthetic USDC stays pegged to $1 through:

• Redeemability of synthetic USDC at par value for USDC at any time

• Real-time rebalancing to maintain delta-neutrality of collateral

Aallocations are always transparent and auditable via the protocol’s dashboard. Every pikUSDC and pitUSDC token is backed by productive collateral designed to maintain both liquidity and peg integrity under a wide range of market conditions.