DeFi protocols are intensifying efforts to capture interest income from stablecoin reserves, traditionally managed by issuers like Tether and Circle. Hyperliquid recently launched its USDH stablecoin, with Native Markets securing the bid to return 100% of treasury income to the blockchain. Ethena's USDe stablecoin has also seen significant growth, reaching $140 billion in circulation and generating $54 million in August. Other protocols such as Maker, Frax, and Aave are redirecting yields towards token buybacks, ecosystem funding, and infrastructure costs. Despite the potential for increased decentralization and revenue, these models face challenges, including regulatory scrutiny and dependence on centralized U.S. Treasury assets.