Allocations is how institutions on DFNS put balances to work: deposit into a yield source, track the position and its rewards, withdraw at will, all through one API, under the same custody, policy, and governance controls as everything else on the platform. It launched with M0, connecting institutional balances to M0’s yield-bearing stablecoin infrastructure. Today it expands to Yield.xyz, opening Allocations to a curated set of onchain vaults across four stablecoins and two networks, and, over time, to the breadth of yield sources Yield.xyz integrates. Idle treasury becomes productive treasury, without leaving DFNS.
Idle balances, and the risk of putting them to work
Institutions running on DFNS hold meaningful stablecoin balances: operating float, treasury reserves, customer funds awaiting deployment. Onchain, those balances can earn yield. But accessing that yield has meant stepping outside governed infrastructure, into DeFi interfaces, unaudited wrappers, and manual position tracking, exactly the kind of unmanaged operational surface a regulated business cannot accept. Allocations exists to close that gap, and each new protocol it supports widens what a treasury can do without leaving its controls.
Yield.xyz, starting with six curated vaults
The Yield.xyz integration takes a deliberately conservative shape. DFNS exposes a curated set of vaults as new allocation protocols, selected for their track record, their curators, and their standards compliance. Six are live at launch, spanning USDS, USDC, USDT, and PYUSD.
On Ethereum:
- Sky Savings Rate (sUSDS): protocol-native yield on USDS from Sky, one of the longest-running and largest onchain savings protocols.
- Gauntlet USDC Prime (gtUSDC): a Morpho vault on USDC curated by Gauntlet, one of the most established risk managers in onchain finance.
- Steakhouse USDT Morpho: a Morpho vault on USDT curated by Steakhouse Financial, one of the largest and most established curators on Morpho.
- Sentora PYUSD Main (Morpho V2): a Morpho V2 vault on PYUSD, PayPal’s US dollar stablecoin, curated by Sentora, the institutional DeFi specialist.
On Base:
- Gauntlet USDC Prime: the same Gauntlet-curated USDC strategy, on Base.
- Steakhouse USDC Morpho: a Morpho vault on USDC curated by Steakhouse Financial.
All six are standard ERC-4626 vaults, the audited, widely adopted tokenized-vault standard, held directly by your wallet. There are no wrapping contracts and no intermediary custody: when you deposit, the vault mints its shares straight to your DFNS wallet, and your position is exactly what the chain says it is. Yield.xyz provides the vault curation, transaction construction, and yield data behind the scenes; your assets never touch it.
How it works
Deposits and withdrawals run through the Allocations API as step-by-step actions, exactly as with M0, each transaction signed by your wallet through the normal DFNS lifecycle, which means each one passes the Policy Engine first: approval quorums, limits, and roles apply before anything is signed.
A deposit is two on-chain steps: approve the vault to spend the token, then call the vault’s deposit function, with DFNS confirming each on-chain before proceeding. A withdrawal is one: redeem shares, and the underlying tokens return to your wallet. After every completed action, DFNS records a checkpoint of your share balance and the share price, which is what makes rewards tracking accurate.
Your position is displayed the way it actually exists: the amount is your vault share balance (for example, gtUSDC), read directly from the vault contract on-chain, and your rewards are the yield earned since opening the position, expressed in the underlying token (for example, USDC). Because ERC-4626 vaults accrue yield by increasing the value of each share rather than distributing tokens, DFNS computes rewards from the checkpoint history, so an institution that deposits and withdraws repeatedly, at different share prices, still sees a correct rewards figure rather than a naive approximation. Balances and rewards are read directly from the blockchain, so existing positions remain fully visible and withdrawable even if the Yield.xyz API is unavailable; only new transaction construction and the displayed APY depend on it.
Defense in depth: every payload validated before signing
One design choice deserves its own section. Every unsigned transaction returned by Yield.xyz is validated by Shield, an open-source verification library, before it reaches signing. Shield independently checks that the transaction targets a known, whitelisted vault contract, drawn from a registry covering more than 1,486 ERC-4626 vaults across 14 EVM chains, that its calldata matches the expected operation with the correct parameters, and that the payload has not been tampered with since construction. If Shield rejects a transaction, it is never signed and never broadcast.
This means that even in the scenario where the transaction-construction API itself were compromised, no unexpected transaction would reach your wallet. It is the same principle that runs through the rest of the platform: verify everything, trust no single component, and put the check as close to the signature as possible.
What this is, and what it is not yet
We are expanding narrow on purpose. Today’s Yield.xyz integration is ERC-4626 vaults only, the six above, on Ethereum and Base. It does not include other yield types, staking, lending markets, or tokenized real-world-asset yield, and it does not include managed or omnibus vault modes, which we excluded precisely because they introduce smart-contract intermediaries and lack a clean receipt token in the wallet. Where those trade-offs exist, we chose the smaller attack surface.
That is the point of building this on Allocations: one surface, growing coverage. M0 came first, Yield.xyz’s curated vaults come today, and the same standards will bring more protocols, assets, and networks over time, through Yield.xyz’s integrations and beyond. If there is a vault or a yield source your treasury needs, tell us, that input directly shapes the curation.
Get started
- Learn more about onchain core banking: dfns.co
- Explore the platform and documentation: docs.dfns.co
- Talk to our team about Allocations: sales@dfns.co