DeFi Markets Update 2026-08-18
reUSD on Kamino, Growth of mGLO, Vaultedge PSM Deployment
Welcome to another DeFi Markets Update—your no-nonsense briefing on the cryptobanking plumbing and market pulse.
Steakhouse Onboards reUSD on Kamino
Steakhouse has onboarded reUSD as collateral exposure for the USDC and USDG High Yield vaults through a new reUSD market on Kamino. The market went live on August 13 and allows reUSD holders to borrow USDC or USDG against their position.
reUSD is Re’s senior reinsurance-backed token, currently with roughly $196m in deposits and 6.2% APY. Its returns are linked to Re’s insurance underwriting portfolio, reserves and premium receivables, giving depositors, lenders and borrowers onchain access to a specialised TradFi yield source.
Initial supply was strong, with the 1m reUSD collateral cap filled within 76 minutes and subsequently increased to 5m reUSD. The market has now reached over $8.5m in size, with the current breakdown below.
For Steakhouse, the integration adds another isolated, capped RWA-backed credit market to the High Yield vaults. The vaults do not hold reUSD directly, but supply USDC and USDG to borrowers using reUSD as collateral.
Private Credit Borrowing Grows on Morpho
Just under four weeks ago, we onboarded mGLO as collateral on Morpho Base. Borrowing in the mGLO/USDC market has since grown from $10m to $33m, with utilisation now around 90%.
mGLO is tokenised private credit managed by Fasanara and brought onchain by Midas. Its underlying portfolio is mainly short-duration trade receivables, giving holders exposure to private credit that can also be used as onchain collateral.
The growth comes from holders depositing mGLO on Morpho and borrowing USDC against it while keeping their mGLO exposure. Nearly all of the USDC supplied to the market is currently allocated through Steakhouse-curated vaults, including $28.9m from High Yield USDC Edition and $7.6m from High Yield USDC.
The market applies a 6% valuation haircut and a 91.5% LLTV, resulting in an effective LLTV of roughly 86%. The growth so far suggests there is demand for making private credit more useful onchain, beyond simply holding it for yield.
Vaultedge Routes Stablecoin Liquidity into Steakhouse USDC
On August 3, Vaultedge connected sUSDVE to Steakhouse by deploying USDC from its Peg Stability Module (PSM) into Steakhouse-curated lending strategies on Base. This gives the existing vault another source of USDC coming through Vaultedge.
USDVE is Vaultedge’s dollar-pegged stablecoin, while sUSDVE is the yield-bearing token users receive when they stake USDVE through the Vaultedge app. sUSDVE has no lockup and earns from yield generated across Vaultedge’s system.
The PSM helps keep USDVE close to $1 by allowing swaps between USDVE and USDC. With the Steakhouse integration, part of that USDC can also be deployed into the existing Steakhouse USDC vault and earn lending yield on Morpho while remaining part of Vaultedge’s liquidity setup.
Half of the yield generated on the deployed PSM liquidity goes to sUSDVE holders. Vaultedge continues to manage the stablecoin and user-facing liquidity, while Steakhouse manages how the USDC is allocated across lending markets and the risk behind those allocations.