“Stablecoins Are The Greatest Product to Ever Come Out of Crypto” - Lulo Head of Growth Dissects Solana’s Stablecoin Landscape

Stablecoins are the lifeblood of any DeFi landscape, facilitating deeper, more resilient liquidity and more composable markets. Solana’s biggest stablecoin yield aggregator, Lulo, sits at the intersection of the network’s stablecoin activity, automatically routing users’ funds to optimize their savings.

Eager to hear more about the platform’s forward plans in an evolving ecosystem, SolanaFloor caught up with Lulo Head of Growth Maurice Chalfin to dive into the intricacies of Solana’s stablecoin scene.

The Case for ‘Boosted’ and ‘Protected’ Deposits

With over $88.7M in directed liquidity (DL), a metric similar to the more widely used TVL, Lulo is undoubtedly Solana’s most popular yield aggregator. While much of DeFi is geared towards high-risk, high-return yield, Chalfin asserts that Lulo’s growth and user retention are due to a diversified product suite and an honest, transparent approach to yield generation.

“Over the last few years, Solana specifically has developed multiple segments of users. There are multiple user types, and Lulo services every user type. We have something for everybody, all risk appetites, and a lot of professionals in the space. A lot of people are using us for treasury management, and when you use Lulo, you know where the yield is coming from.”

In February 2025, Lulo unveiled two separate strategies, ‘Boosted Deposits’ and ‘Protected Deposits’. Essentially, users who opt for boosted rewards earn maximum yield, but are responsible for providing coverage for ‘protected’ depositors against failures in apps integrated with Lulo.

“The Boosted and Protected product is a direct result of user feedback. People wanted insurance. We couldn't give insurance, it doesn't exist yet in the decentralized finance space. So we offered protection, and that was a big thing. The protection should bring institutional interest because they can't risk their funds.”

Despite Solana DeFi users’ propensity to gravitate towards the highest possible yield, fund distribution between strategies is remarkably similar. Of Lulo’s $88.7M in DL, boosted and protected deposits have attracted 13.0% and 11.49% of deposit share, respectively, with the remaining funds allocated to Lulo’s standard strategy.

 

“While there is risk in DeFi and that's just an inherent part of the system as we know it, reducing as much risk as possible is really tantamount to long-term wealth creation and growing your savings.”

Lulo’s DeFi Integrations

At present, Lulo directs user deposits to optimized yield sources from four of Solana’s biggest lending applications: Kamino, Drift, Save, and MarginFi. However, with dozens of emerging DeFi applications offering creative ways to generate yield on stablecoins, Lulo’s strict integration list is arguably missing out on new opportunities.

When asked about the selection criteria guiding Lulo’s integration, Chalfin was adamant that protecting users took precedence over chasing trendy, higher-risk yield strategies. Acknowledging that the Lulo team “have been asked to integrate multiple other platforms”, Chalfin reinforces the importance of longevity, trust, and over-collateralized lending markets:

“Time-tested, battle-tested. Every protocol that is integrated into Lulo, the founders, Daniel and Jesse, know those teams. They met those teams. Kamino, MarginFi, Drift, and Save. Kamino and Drift specifically are managing billions of dollars and are audited multiple times over, and we only route through over-collateralized lending pools.”

With the growth of yield-bearing stablecoins and the upcoming launch of tokenized equities on Solana, RWAs have rapidly become one of the most hyped asset classes of the year. While Chalfin recognizes that RWAs could have a future in Lulo’s product, they were not a priority for the team at this stage without being requested by existing users.

“RWAs, I can't say are off the table, but they're not a focus right now. I think it would be something they'd love to do if and when the time is right, the risk is right, or the risk is adjusted properly.”

Bullish on Stablecoins?

Stablecoin supplies across the entire crypto industry have been up-only since 2024, cracking $248B in June 2025. 

Alongside evolving crypto regulations, Chalfin is optimistic about the expanding role of stablecoins in the global economy and the U.S.’s hunger to provide clear legal frameworks for the asset class.

“It's in the U.S.’s best interest for the dollar to remain the reserve currency of the world and maintain hegemony by passing stablecoin legislation and allowing banks to process and use $USDT, $USDC... The U.S. dollar is probably the greatest export of America. From history, from product, from idea, there's nothing bigger or stronger and has had a more long-lasting effect than the dollar dominance post-WWII.”

Chalfin argues that surging stablecoin supplies and lending rates on Solana are a good indicator of the market’s appetite for risk. Higher lending rates imply that traders are willing to pay higher interest on borrowed capital, suggesting increased belief and confidence in their positions.

“The more people are trading, and the more trading activity, and the more ‘Froth’ there is in the market, the higher the rates go… The higher the stablecoin lending rates are, the more interest there is in trading in the market, and it's usually more ‘bullish’.” 

Expressing palpable enthusiasm towards non-speculative use cases for crypto assets, Chalfin is excited to see issuers like Circle and Tether become household names in the TradFi scene. Reaffirming his belief in the asset class, the Lulo Head of Growth maintains the position that stablecoins are, ironically,  the most valuable thing crypto has ever created.

“I think it's incredibly bullish seeing $USDC minting all the time. I think it's incredibly bullish that Tether is like the sixth-largest holder of U.S. Treasuries in the world, behind governments and nations. Like I said in 2024, 2025 is gonna be the year of the stablecoins, because stablecoins are the greatest product to ever come out of crypto, and it's the only product in crypto that actually solves real-world problems.”

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