# This Week at Royco #2 - Markets Compounding 

*Three more markets opened to the public this week, and Royco's tranches are now live on Pendle and Morpho.
*

By [Royco](https://blog.royco.org) · 2026-05-08

royco, defi, tranching, yield, pendle, morpho, lifi, weekly, update

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**TL;DR**
=========

*   Three new markets open to the public: Auto Finance, Avant, Maple. Four live in total.
    
*   apyUSD Junior went live on Pendle. Currently the highest-paying stablecoin yield on the platform.
    
*   Senior apyUSD listed as Morpho collateral.
    
    * * *
    

Three New Markets Open
======================

*   [AUTOfinance](https://x.com/autopools) (autoUSD): Stablecoin capital actively rebalanced across Aave, Fluid, Morpho and 79+ destinations.
    
*   [Avant Protocol](https://x.com/avantprotocol) (savUSD): Multi-strategy yield, primarily looped positions across money markets.
    
*   [Maple Finance](https://x.com/maplefinance) (syrupUSDC): Institutional lending marketplace running since 2021. Capital lent to KYC'd, credit-underwritten institutional borrowers. All loans overcollateralized and on-chain.
    

![](https://storage.googleapis.com/papyrus_images/c967892b52c69af4010384a7e6fb105cc0132f6b4ddf24be60ad6dbd1c195c9d.png)

* * *

**Tranches, Now Composable**
----------------------------

Tranching unlocks new types of depositors: the risk-averse going Senior, the risk-seeking going Junior, and the users entering through protocols composed on top.

This week, the third type started showing up:

*   [apyUSD](https://app.pendle.finance/trade/markets/0x5949c3bfdf9babd759170a3a75c4fe52b03e6797/swap?view=pt&chain=ethereum) Junior on [Pendle](https://x.com/pendle_fi). Fix the rate at 19.35% APY through November 5th, 2026, or trade the yield via YT.
    
*   Senior apyUSD on [Morpho](https://x.com/Morpho). Two collateral markets (against [USDC](https://app.morpho.org/ethereum/market/0x41b12bac98fdc74ffeb513771b0bd341a14733f57072f7236cf3730af06d7fa2/roy-st-apyusd-usdc) and [apxUSD](https://app.morpho.org/ethereum/market/0xbec3a93801b559a8652552886481922e5676246b4e328788b2b53e13c21fd1c4/roy-st-apyusd-apxusd)) with near-zero borrow rates. Designed for looping covered yield. New collateral for credit markets to build on.
    

That's the third profile of capital, unlocked by tranching.

![](https://storage.googleapis.com/papyrus_images/319a6447beadcb60ca5aeb3d71c7dad3cc8eee6afaca833ebceb9e0f0a274700.png)

* * *

**Any Token, Any Market**
-------------------------

[Lifi](https://x.com/lifiprotocol) is now integrated across the Royco app.

On the Senior Royco USDC Vault, depositors can bring any token and swap directly into the vault.

![](https://storage.googleapis.com/papyrus_images/a3f278862df1a98257c4e9a2e3c69322f3dced8ae7b6edf12e91ae31d975d3b9.png)

Same on every market page. The apyUSD market from [Apyx](https://x.com/apyx_fi), for example, now has a Swap tab. Bring any token, swap into apyUSD and deposit into the Senior or Junior tranche directly.

![](https://storage.googleapis.com/papyrus_images/42bf9bed4ff0e26cb0f8a8db66c62045bd3d6f7092bf2cf354fb2db1a4aaf84f.png)

* * *

**What's Next**
---------------

More markets queued. Senior apyUSD on Pendle next. The Initial Market Cohort is half deployed. The other half is coming.

Royco is just getting started.

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*Originally published on [Royco](https://blog.royco.org/this-week-at-royco-2-markets-compounding)*